REPORT | JUNE 2017 The Impact of Executive Education in Sub-Saharan Africa
REDUCING POVERTY THROUGH FINANCIAL SECTOR DEVELOPMENT
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The Impact of Executive Education in Sub-Saharan Africa
RESEARCH CONDUCTED BY: CANADIAN BUREAU FOR INTERNATIONAL EDUCATION AND UNIVERSITY OF NEW BRUNSWICK. FOR: FINANCIAL SECTOR DEEPENING AFRICA.
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Contents
List of Abbreviations 5 Executive Summary 7 1. Background and Context of the Project 10 2. Research Methodology 12 3. The Financial and Banking Sector in SSA 13 3.1 The Financial and Banking Sector in SSA: Current State and Trends 13 3.2 Summarising the Current State of Financial and Banking Services in SSA 15 4. Conceptual Framework for Training Needs in the Banking Sector 18 5. Primary Country Research Findings 21 5.1 The Use of Executive Education in Financial Service Organisations 22 5.2 The Impact of Executive Education on Financial Service Organisations 24 5.3 The Impact of Executive Education on Customers 28 5.4 Financial Service Organisations and Impact Measurement 28 5.5 The Impact of Executive Education on Employees 29 5.6 The Impact of Executive Education on Organisational Change 30 5.7 The Perception of Executive Education Programmes 31 5.8 Effectiveness of Executive Education: Perception Gap Between Managers and Employees 31 5.9 Effectiveness of Executive Education: Gender Differences 33 6. Executive Education and the Financial Services Sector in Secondary Countries 34 7. Conclusions 35 8. Actionable Recommendations 36 9. Impact Measurement and Pathway 38 References Cited 41 Appendix A: Research Team 43 Appendix B: List of Universities 44 Appendix C: List of Participating Organisations 45 Appendix D: Secondary Country Case Studies 47 Appendix E: Suggested Design for Further Research 81
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List of Figures & Tables
Table 1 Summary of Key Findings 7 Table 2 Banking in SSA: Summary from the European Investment Bank 2013 Study 16 Table 3 Training Needs Analysis 19 Table 4 Descriptive Statistics 21 Table 5 Focus Group Interviews 21 Table 6 Principal Training Institutions 22 Table 7 Types of Executive Education Programmes 23 Table 8 Average Key Ratings by Employees and Managers 24 Table 9 Test of Differences in Perception of Income Enhancement 32 Table 10 Test of Differences in Perception of Mobility 32 Table 11 Gender Responses on Pay and Mobility 33 Table 12 Executive Education Impact Measurement Framework 38 Table 13 Impact Pathway 39
Figure 1 Training Needs and Providers 18 Figure 2 Perceived Impact of Executive Education on Management Skills 25 Figure 3 Perceived Impact of Executive Education on Accounting Skills 25 Figure 4 Perceived Impact of Executive Education on Financial Skills 26 Figure 5 Perceived Impact of Executive Education on Financial Opportunity 26 Figure 6 Perceived Impact of Executive Education on Performance 26 Figure 7 Perceived Impact of Executive Education on Enhanced Overall Performance 27 Figure 8 Perceived Impact of Executive Education on Career Preparedness 28 Figure 9 Perceived Impact of Executive Education on Pay 29 Figure 10 Perceived Impact of Executive Education on Mobility 30 Figure 11 Gender Difference in Pay and Mobility 33
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Abbreviations
ARL African Research Lead ASQ American Society for Quality – Ghana CBIE Canadian Bureau for International Education CRL Canadian Research Lead EMBA Executive Master of Business Administration ExEd Executive Education FG Focus Group FSDA Financial Sector Deepening Africa GIMPA Ghana Institute of Management and Public Administration IRIC Institut des Relations Internationale du Cameroun ISD Instructional Systems Design Model of Training/Education Impact KNUST Kwame Nkrumah University of Science and Technology MBA Master of Business Administration MGMT Management MUBS Makerere University Business School MUK Makerere University, Kampala N Sample Size (overall) n Subsample Size (small sample of overall N) r Correlation Coefficient RQ Research Question SSA Sub-Saharan Africa TPB Theory of Planned Behaviour UNB University of New Brunswick
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Acknowledgements
The researchers, Canadian Bureau for International Education and University of New Brunswick, on behalf of Financial Sector Deepening Africa would like to extend their gratitude to all those who assisted in the compilation of this report. We would like to thank the principal education institutions in the four primary research countries: Institut des Relations Internationales du Cameroun; University of Ghana; University of Pretoria; and Makerere University for providing us with the details of the types of executive education programs and courses available.
We would also like to thank the research team from CBIE/UNB – David Comerford, Dr. Jeffery J. McNally, Dr. Eben Otuteye, Dr. Gopalan Srinivasan, Dr. Joseph Abekah; and the African research team including Prof. Abendnego Feehi Okoe Amartey (Ghana); Dr. George Frempong (South Africa); Prof. Alexis Kwontchie (Cameroon); and Prof. Wasswa Isaac Katono (Uganda).
A special thanks to Dr. Moses Ochieng, Julias Alego and Martin Namasaka at FSD Africa for their guidance and support throughout the research process as well as their valued feedback on the findings.
The views expressed in this report are those of the authors and in no way entirely reflect those of FSD Africa.
6 Executive Summary
Commissioned by Financial Sector Deepening Africa sector across SSA and in each of the targeted countries. (FSDA), the Canadian Bureau for International Education In addition, a sampling of the key programmes and (CBIE) in collaboration with its member institution, the course offerings of the main education providers were University of New Brunswick (UNB), herein after referred identified in each of the target countries. A conceptual to as “the researchers”, conducted the following research framework was designed to map out the training needs on the impact of executive education on financial sector in the sector and impact indicators have been proposed organisations in Sub-Saharan Africa (SSA). to help in the future measurement of the impact of To provide a reference point for this research, the executive education in the region. researchers has defined executive education (ExEd) Overview of Findings: As the desk study confirmed, as: certified but non-credit and non-degree academic in the last ten years SSA’s financial sector has seen programmes and/or courses at graduate-level business unprecedented growth due to factors including the schools worldwide for executives, business leaders and/ continent’s rapidly emerging middle class, significant or functional managers. policy reforms and increased banking regulations in Overview of Scope and Methodology: Primary a number of economies. In recent years, a number of research data was gathered from surveys, interviews studies conducted by global financial institutions such and focus groups in four primary countries: Cameroon, as Ernst and Young, KPMG, the Economist Intelligence Ghana, South Africa and Uganda. A team of researchers Unit, the MasterCard Foundation and the European from UNB, assisted by an African Research Lead (ARL) Investment Bank identified weaknesses, strengths and from each of the four primary countries, approached the opportunities in the financial sector that were further research with the aim to: 1) conduct a study of current validated by the data from the primary and secondary ExEd offerings in general as well as ExEd offerings aimed countries of this research. See Table 1 for a summary of at the financial sector; 2) conduct an institutional and the key findings. market-level analysis; and 3) propose impact indicators by The studies mentioned above note in particular that which executive education can be measured objectively. SSA has experienced significant growth in the banking Desk reviews were conducted for SSA in general as sector including its emergence as a mobile banking well as for six secondary focus countries: Kenya, Senegal, leader, openness to foreign, global and Pan-African banks Tanzania, Zambia, Namibia and Nigeria. A brief case and active use of microfinance mechanisms. However, study was produced for each of the secondary countries the continent’s financial sector is still considered (see Appendix E for Secondary Country Case Studies). ‘underdeveloped’ with major challenges of unmet The research identified major trends, impacts and financial and banking needs that executive education challenges around the impact of ExEd on the financial training can help to address.
Table 1: Summary of Key Findings
ExEd in SSA needs to Qualitative and quantitative data triangulated to reveal that ExEd, be more practical and while in high demand and well received in the finance sector, is in need less theoretical of improvement in SSA, particularly in the provision of more practical training options.
Employees are Employees do not feel their pay is commensurate with their ExEd. somewhat dissatisfied Particularly, as many employees pay for their own education, with their pay after they may perceive that their pay is below what they expected completing ExEd after investing in ExEd. There were also gender differences in the training perceptions of ExEd on pay.
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ExEd graduates Employees that are ExEd graduates report that they are more mobile perceived themselves than employees who do not possess ExEd. There were also gender to be mobile differences in the perceptions of ExEd on mobility.
Managers value the Managers in financial services firms respect the work of employees skills which ExEd with ExEd, reporting that ExEd graduates perform well and are graduates possess innovative, particularly in terms of applying the skills they acquired (e.g. risk management) and general management (e.g. communication) to problems and issues.
Both employees and managers agree that ExEd improves financial skills (e.g. risk assessment), management skills, accounting skills and identifying financial opportunities.
ExEd graduates Qualitative data from employees, managers and executives indicate help make their employees in financial services firms who possess ExEd improve the organisations more image of their organisation and have played a key role in shaping prestigious customer perceptions of their bank.
ExEd improves Both employee and manager groups reported that ExEd improves customer service employee skills specifically relating to customer service and, as such, and relations increases customer satisfaction.
Managers of financial services firms use a mix of assessment tools, including formal performance appraisals, sales targets, complaints and customer satisfaction data to measure the impact of ExEd in their organisations.
Currently, ExEd is Very few private training institutions in SSA are offering ExEd provided primarily by programmes. For those that do, data was difficult to obtain. universities
ExEd graduates are The demand appears to be growing for graduates of ExEd, although in demand in SSA more research focusing on outcomes of ExEd is required. financial institutions
Conclusions although they are concerned about low levels of pay It is evident from this research that changes are required and about their potential mobility in financial services in the delivery, scope and content of executive education firms; ExEd can be improved in SSA via partnerships in order to address the needs of the sector. The research with international business schools and a larger focus findings affirm that: ExEd positively impacts financial on practical learning activities as opposed to theoretical services firms in the aggregate, chiefly through the ones; and, ExEd schools with international partners are application of employee skills and knowledge learned seen as more prestigious in SSA. in ExEd programmes (i.e., the programmes are creating The most prevalent suggestion emerging from the more and better executives in SSA); the market for ExEd focus groups and interviews is that ExEd should be more is growing and in demand from financial services firms; practical in nature compared to its current form, which ExEd graduates report being satisfied with their careers, focuses heavily on theory.
8 Further longitudinal research is necessary to measure establishing a specialised training institution for the the impact of executive education programmes on financial services sector in SSA. students and organisations. Little is known in the From the research, the following actionable existing literature, but the Instructional Systems Design recommendations have been made that areaimed at (ISD) model and the Theory of Planned Behaviour each various stakeholders in SSA including FSDA, financial provide a roadmap for future research. Suggestions services firms and education providers: for long-term improvement of ExEd also include
Recommendation 1 • For FSDA, support a business school in SSA to establish a specialised research and training institute as a knowledge hub for the financial service sector.
Recommendation 2 • For FSDA, undertake additional research to study the impact of ExEd on the financial service sector over the long term as well as address the questions of whether ExEd leads to leads to increased access to financial services by the underserved market segments.
Recommendation 3 • Within financial services firms, establish employee incentive programmes to identify internal candidates for ExEd and use graduates of ExEd as mentors where appropriate.
Recommendation 4 • Within financial services firms, improve performance measurement practices to demonstrate the link between ExEd and performance, pay and mobility.
Recommendation 5 • Within education providers, revise curriculum of ExEd programmes to provide training that is more practical as well as that reflects a more African perspective.
Recommendation 6 • Within education providers, develop partnerships with international education providers as well as the financial service sector to enhance ExEd.
Recommendation 7 • Within education providers, develop curriculum that allows ExEd instructors to leverage their work-related experience with theoretical knowledge to ensure positive learner outcome.
Lastly, the report identified methods for impact enhance the impact of ExEd on the financial sector in measurement and a proposed impact pathway that the areas of additional research, improved capacity of maps out suggested actions and indicators for financial education institutions and performance assessment as sector support organisations to consider as they seek to well as increased knowledge of financial institutions. contribute to the overall strengthening of the financial sector in SSAx. The proposed interventions aim to
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1. Background and Context of the Project
In the last ten years, SSA’s financial sector has seen the global financial crisis hit in 2008, making it less unprecedented growth due to factors including the vulnerable to the ramifications experienced by much continent’s rapidly emerging middle class, significant of the world. As financial sector development leads to policy reforms and increased banking regulations in a increased direct investment, overall economic growth number of economies, the rising number of global and and poverty reduction, more understanding of the pan-African banks and the prevalence of, and access sector is required to support its momentum. As such, the to, non-bank and loan mechanisms. Although a fair researchers , on behalf of Financial Sector Deepening amount of investigation into increasing the institutional Africa (FSDA), has conducted this consultancy with the capacities of financial institutions has been undertaken primary purpose of deepening FSDA’s understanding of (e.g. Koning, 2013; Wyman, 2013), little is known about executive education in the financial sector in SSA. the impact of education and training in the financial To provide a reference point for this research services firms of SSA. Additionally, Africa’s exposure executive education has defined executive education as: to complex financial instruments was limited when
Definition of Executive Education
Certified but non-examined and non-degree academic programmes and/or courses at graduate-level busi- ness schools worldwide for executives, business leaders and/or functional managers.
The roots of executive education, which dates back over education and learning. As is stated in a 2012 UNICON 100 years, were applied using principles of scientific report, in the accelerated pace of today’s business world, management in the early 20th century. Early offerings where companies are challenged by more management were located primarily in the United States and focused data, more real-time communication, and more on core competencies of managers and executives, as well global competition, continual learning is no longer a as strategic considerations, for engineering graduates competitive elective but, rather, a business necessity for (Khurana, 2007). As ExEd developed, it expanded corporate leaders. to include topics beyond core competencies such as Spurred by the fluidity of the current business facilitating the creation and management of wealth environment, trends in ExEd are also undergoing a shift and improving the well-being of employees (Hamel & that is reflective of the volatile times. A 2015 market Prahalad, 1994). Programmes grew exponentially in trends study conducted on behalf of The Association to the 1980s and 1990s all over the world. However, due to Advance Collegiate Schools of Business (AACSB), the significant travel restrictions following the terror attacks Executive MBA Council (EMBAC) and the Executive on 9/11 and then a global recession, international ExEd Education Consortium (UNICON) identified current programme growth has slowed in the early part of the and near-future developments in ExEd. What is most 21st century. apparent from the trends identified is that ExEd Despite the constrained demand, current trends point programmes and courses must become more adaptable to companies valuing ExEd and making strong efforts and relevant to market needs with the flexibility to to recommit to the development of their leadership. evolve to meet rapidly changing demand. Executive Currently, ExEd programmes are maintaining their focus education providers are attempting to address this on the development of managerial skills, particularly through the adoption of technology such as online ones that will enable career growth over time (e.g. or blended learning models as well as through the communication skills, conflict management skills, etc.). customisation of course content. Customisation of Courses and programmes, which are available globally, ExEd, while a large undertaking, does necessitate a are designed to aid the professional development of closer relationship between education providers and the business managers and executives and are considered market, which can be seen as having a positive impact on part of an ongoing process of continuous professional curriculum design.
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It was also identified that the applied learning within to student dissatisfaction and frustration, as students do ExEd programmes and courses would be beneficial not feel that they are acquiring the necessary skills to be and a more effective means for skills development. The an executive (Stephens & Margey, 2015). report also indicated that if ExEd providers placed more Efforts have been made to improve the quality of emphasis on evaluating how the intended learning from ExEd by incorporating action-learning principles. For a programme or course is being effectively applied, example, Stephens and Margey (2015) implemented then programmes could also be developed with a more and qualitatively examined the outcomes of an action intentional focus on meeting the market demands. learning-centred ExEd programme in two cohorts at The impact of executive education has been examined an Irish university. They found that the programme for decades by management scholars and consultants imposed both academic rigour and supported the alike, often with mixed results. Some scholars take the learners via classroom discussions and via journaling and view that, because of the ever-widening gap between reflection sessions. However, the authors noted that the managerial research and practice, ExEd has had little programme faced several challenges, including initial impact because its content is irrelevant (e.g. Pfeffer & resistance from both the learners and the instructors. Fong, 2002). Some of these scholars question the impact The resistance came in the form of questioning the value of executive education because of its over-reliance on of added discussions and reflection sessions at first, but irrelevant theory. Simply stated, these scholars assert that these pedagogical devices were eventually adopted by ExEd is built on the wrong content and is being delivered most via practice and reinforcement of their importance to the wrong students in terms of how they are selected to action learning. The authors concluded that, for an and their future careers (e.g. Mintzberg, 2004). Others action learning programme to reach its fullest potential take the more cautious position and note that there is an in terms of its outcomes, there needs to be a high level impact of ExEd on both individuals and organisations. of communication between ExEd learners themselves They argue that the relevance of ExEd programmes and with their instructors. Instructors need to be trusted can be improved via rigorous study built upon a in terms of their expertise and knowledge of enacting foundation that includes a close relationship between theoretical knowledge in the workplace. Without the theory and practice (e.g. Stokes, 1997; Tushman et al., communication and trust, action learning-based ExEd 2007). In fact, research has demonstrated that if ExEd programmes will not be as effective as they could be programmes are built upon what are known as ‘action- in terms of training future executives in ‘real-world’ learning’ principles, they can positively and significantly experiences. impact employee and organisational growth (Tushman Clearly, the importance of combining theory and et al., 2007). practice is pronounced in ExEd. However, enacting The authors of this research accept that action- this combination has traditionally been a challenge in learning is broadly defined as ‘learning by doing’ ExEd classrooms. Too often, it has been claimed, ExEd (Roethlisberger, 1977) in a learning context that is instructors are ill-equipped in terms of their experiences relevant to students and organisations alike. It involves the to offer insight into practising theoretically sound careful balancing of the sometimes-conflicting forces of principles (Mintzberg, 2004). To change this, built upon practical, working knowledge and academic, theoretical communication and mutual trust, action learning has knowledge learned in the ExEd classroom (Stephens been advanced as a framework to solve this problem. & Margey, 2015). It is usually accomplished through However, its instalment as a guiding framework has yet to learning a theory and having the opportunity to apply be examined quantitatively. To properly use quantitative it in a workplace setting, followed by reflecting on the methods to advance the study of the outcomes of experience in a report. The reflection involves reporting ExEd, a standardised framework of its study needs to about the experience in terms of what was successful and be applied to ensure common methodological and what might need improving in the future. Unfortunately, empirical ground. To do this, researchers and educators the gap between theory and practice on the academic could turn to a tried-and-true model of higher education side of ExEd has hampered the development of assessment, the Instructional Systems Design model successful, action-learning-oriented ExEd programmes (discussed in Appendix F: Suggested Design for Further (Bensimon et al., 2004). The major issue here is that Research). This model addresses the needs of the ExEd instructors, who are often academically trained learners, programme design and assessing outcomes in but possess little practical experience as executives, place a straightforward, connected frame that loops between an emphasis on theory in the ExEd classroom at the assessing outcomes and revising the study of learners’ expense of practical, hands-on learning. This often leads needs and programme design requirements.
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2. Research Methodology
The main objective of this consultancy was to conduct level managers learn most effectively in executive quantitative and qualitative research in multiple settings education courses and how their learning benefits their to develop an understanding of how middle and senior- organisations. The scope of work included: 1 2 3
a study of current ExEd an institutional-level and the proposal of impact offerings in general as well as market-level analysis indicators by which ExEd offerings aimed at the executive education can be financial sector measured objectively
The project was led by a Canadian team of researchers an on-going process for the duration of the research and and was supported by an African survey team comprised was supervised by the Canadian Research Lead (CRL). of a principal researcher from each of the priority The researchers research team developed a countries (see Appendix A). The research questions that methodology to identify respondents from three key were used in the data collection looked at the impact stakeholder groups in each country to meet the objectives of ExEd on the company, the customers, the employees of the research project. They included: 1) employees who and organisational change. The research also identified have taken executive education in financial institutions; executive education courses for the financial services 2) middle and senior-level managers/executives of these and how financial service organisations measure these financial institutions, etc.; and 3) education providers. impacts. The Canadian team identified African Research To assess the learning context of executive education Leads in Ghana, Cameroon, South Africa and Uganda in terms of its impact on financial organisations in as the survey team. A training workshop was held in SSA, the researchers selected four priority high-growth Accra, Ghana at the Open University of Laweh (hosted countries including Ghana, Uganda and Cameroon, as by The University of Professional Studies), where the well as South Africa, the current industry leader. These survey team was provided guidance on how to deliver the countries were also selected based on their regional and survey instruments and conduct interviews. At the end economic diversity as well as language demographics of the workshop, the survey team was well equipped with (Anglophone/Francophone). a tentative work plan and refined framework to collect The researchers also conducted desk research and comparable data from their respective countries as well developed case studies for a number of secondary as the tools to conduct the research. See Appendix B for countries that include Kenya, Tanzania, Zambia, all survey and interview materials used to collect data for Nigeria, Namibia and Senegal. Secondary countries were this project. selected based on their economic and social impact in Following the training workshop, the survey team SSA, the anticipated scope of their executive education returned to their respective country and led the data opportunities, the additional language and sub-regional collection activities identified during their training. representation they bring to the overall research (West The survey team conducted key respondent interviews Africa, East Africa, Southern Africa) and the role of and focus groups, and distributed survey questionnaires FSDA in the case of Kenya, Zambia and Nigeria. Case reaching up to 250 employees and managers at financial studies were conducted to provide additional data to institutions, training institutes and universities in their the overall analyses, including programmes, schools respective countries to collect data. Overall, in the four offering ExEd, themes in higher education, and other primary countries 750 individuals were reached as per demographic and descriptive factors in SSA. MBA Table 4: Descriptive Statistics. students at UNB conducted the desk reviews. This was Image: Kristina Just © 2014
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3. The Financial and Banking Sector in SSA
Much has been written about banking in SSA by exchange, and movement of capital and money (see for international agencies and management services example Alexander and Baden, 2000, and Investopedia, organisations, as well as academic researchers. This 2015). These organisations and institutions include section of our report reviews some of these reports banks, investment funds, insurance companies, stock and studies with the view to highlight the need for and commodity markets, credit unions and credit appropriate training for financial service providers to be card companies, real estate companies, accountancy able to cope with the demands of the rapidly growing companies and consumer finance companies among financial sector in SSA. The review describes (i) the others. In SSA this will also include the susu collection current state of financial and banking services sector system. The importance of the sector has grown and infrastructure, and (ii) personnel training and the significantly over the years as the financial crises of impact of training. 2008-2009 demonstrated. While all these components of the financial services sector are present in SSA, most 3.1. The Financial and Banking Sector in subsectors are still in their infancy and the banking SSA: Current State and Trends sector dominates in the region. For this reason our focus in this study and report is on the banking sector The financial services sector encompasses all businesses in SSA. and organisations involved in the management, The review is done around four main themes, namely: 1 2 3 4
Limited Reach of the Mobile Banking and The Regulatory Skills Challenges and SSA Banking Sector Microfinance Framework Skills Training
These are all themes that are relevant for this study as in Latin America and the Caribbean, and 134.3% in the they reinforce the need for qualified personnel to carry OECD countries. out the banking and financial services sector’s activities The Economist Intelligence Unit (2011), KPMG in SSA. (2015), the European Investment Bank (2013), as well as Mecagni, Marchettini and Maino (2015) all echo the Limited Reach of the SSA Banking Sector limited reach (penetration) of the banking sector in SSA The overwhelming consensus in the literature is that despite significant strides in the last couple of decades. the formal banking and financial services sector serve While significant capital investments and promotion will far fewer percentages of the population in SSA than be required going forward, appropriate personnel will compared to other regions worldwide. Nyantakyi and be required to help drive this push to reach a broader Sy (2015) compared, among other things, the depth segment of the SSA population with various banking and penetration of banking services in Africa relative and financial services so that there will be greater to other regions and found, for example, only 21% of participation in national economic activities. Hence, the population in SSA have bank accounts compared to this study, to the extent that it plays a role in identifying 34% in Latin America and the Caribbean and 90% in how personnel development can be promoted, will OECD countries. Domestic credit to the private sector contribute to increasing the reach of the banking and as a percentage of GDP (an indicator of financial depth) financial sector in SSA. was also found to be 24.4% in SSA compared to 45.5%
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Reaching the Unbanked through Mobile The Regulatory Framework Banking and Microfinance The banking sector is fraught with risks even in the One area of banking services that has gained roots in well-developed economies of the OECD countries. To SSA and is growing rapidly is mobile banking. In fact, the overcome banking risks, governments have put in place Economist (2011) characterised the region as a mobile regulations such as minimum capital requirements, banking leader that is actively using microfinance and governance requirements, capital adequacy norms, mobile phone banking in a push to address some of its reserve and liquidity norms, licences, benchmarks for huge unmet market for unmet financial and banking asset quality, anti-money laundering laws, laws combating needs for the underserved market segments. Ernst and terrorism, and limitations on risk exposure and insider Young (2015) also reported on the reality of mobile lending. The bank’s internal governance procedure banking (money) in the region where the major also requires identity checks. These are reinforced products are peer-to-peer (P2P), prepaid services with reporting requirements, sanctions and corrective and account payments. From their review, significant actions, deposit insurance schemes and institutional growth in this area is expected across all SSA regions in overview and off-site surveillance (Ashta, 2010). the coming years. Local professional bodies must also be seen to be Mecagni, Marchettini and Maino (2015) identified contributing to the establishment of a stable environment mobile banking as contributing to the steady expansion for customers to have confidence in the sector. The of the banking and financial services sector in the importance of an appropriate regulatory environment region during the last decade by improving access is demonstrated, for example in Nigeria, where especially through mobile phones. At the other end liberalisations of the pre-1990s led to failures/revoking of non-traditional banking, Oliver Wyman (2012) also of licences for some local banks in the 1990s (Obienusi, highlighted the significance of microfinance in helping and Obienusi, 2015). Significant improvements the reach of banking and financial services in SSA. The have taken place since the Central Bank of Nigeria report went further to identify the needs of the subsector took stronger action including higher capitalisation if it is to fulfil the significant role it can play in providing requirements. KPMG (2015) attributed the recent services to the unbanked in SSA. significant growth of the banking sector in SSA, in part, With the rapid growth of mobile banking in the region to improved regulations by governments and central come increased risks. These risks are those inherited banks over the last decades. However, the European from both traditional banking as well as new risks unique Investment Bank (2013) saw weak regulatory framework to mobile banking. Risks inherent in banking include as a major challenge to the proper functioning of the risks for the bank, risks for its clients and risks for the banking and financial services sector in SSA. economy as a whole (Godlewski, 2005). It is generally agreed that mobile banking, despite Skills Challenges and Skills Training all the risks, needs to be encouraged to permit the Effectiveness unbanked to have access to financial services and allow The requirement for well-trained personnel at all levels banks and telecom companies to improve their profits. of operation of the banking (traditional, microfinance Thus, regulation in this subsector should be enabling, and mobile) to deliver existing services and introduce open to the start-up and growth of new and varied new products and services cannot be overstated. The models. Regulations should also provide some certainty, skills needs of banks may differ from bank to bank both for providers taking on capital risks and consumers and from product to product. For some core services, entrusting funds to new mobile banking providers however, the needs will be the same across institutions, (Ashta, 2010). as outlined in the conceptual framework in the next Indeed, in their comprehensive report on the banking section of this report. Whatever the skills needs are, the situation in SSA, presented in Table 2, the European availability of properly trained professionals at all levels Investment Bank (2013) identified mobile banking as of industry is necessary for local banks, an attraction for one of the major opportunities to improve access to global banks operating in SSA, and, in recent years, is banking and financial services in the region. With all also an attraction for the pan-African banks that have the attendant risks and the novelty of new products become key players in SSA. An effective education associated with mobile banking and microfinance, the system for financial services personnel will properly need for properly trained professionals in the sector train banking professionals who can be easily absorbed cannot be overemphasised. by both local and international banks. The existing literature is replete with references to the lack of adequately skilled personnel in all facets of the banking sector in SSA.
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For example, Wyman (2012) identified skills shortages as in Financial Institutions in SSA based on an analysis of a major workforce issue for the microfinance industry in a 2012 survey by the CGAP. The findings highlighted, SSA. The report noted the need for about 100,000 new among others: lack of capacity as a major challenge hires over the next five years. Lack of strategic career for FIs; risk management, strategic planning and mid- management focus, microfinance institutions (MFIs) level and people management as necessary skills; and being constrained by internal training resources, lack of available training resources as not always deemed to be skilled trainers and content, and limited accountability of high quality (CGAP, 2013, p. 1). or attributable impact were all identified as part of the FSDA commissioned the Parthenon Group (2013) constraints for the effective delivery of services. The EIB to study the extent to which banks and microfinance (2012) also identified insufficient human resources as institutions coordinate their efforts at the country and one of the challenges facing the sector in SSA. regional levels to address (i) the problem of lack of Furthermore, the Oxford Policy Management Group skills, (ii) the nature of the supply of financial services (2014) assessed the financial training environment in training providers, and (iii) the comprehensiveness Nigeria for FSDA. The study highlighted the importance and effectiveness of training provided. The main of competent workforces for both Deposit Money Banks findings were: (i) entry level and junior experience (DMB) and Microfinance Banks (MFB) for growth and staff account for 65% of total staff and 50% of training stability. It found that (i) both large banks and large man-days; (ii) no collaborative training exists in the microfinance firms have training schools, (ii) there are East African Community; (iii) training solutions exist national and international training providers but quality in other emerging and developed economies; and, (iv) issues exist with local providers, and (iii) the introduction employability, regulation, and training characteristics of a Microfinance Certificate Programme (MCP) and a are the key to a successful collaborative solution for Competency Framework for the DMBs by the Central entry-level officer training. Bank of Nigeria are steps in the right direction. Some The overall conclusion from these studies and recommendations were: (i) supporting the development reports is that despite the significant progress made of a comprehensive programme in retail and SME in the last decades, the financial services sector in banking services, and (ii) developing the MCP and the SSA (except South Africa, Mauritius and Namibia) Competency Framework core components. has a long way to go in term of facilities, reach, and the array of services offered to fully play the role that Impact of Training in SSA financial institutions play in developed economies. Executive education, at the global level, is generally They also affirm (i) the need for appropriate skills in used as a means to provide functioning executives SSA financial institutions, (ii) the significant shortage with training on competencies required for their of trained staff, and (iii) the positive perceived impact work, which their prior training had not provided. of training on staff and corporate performance Often this training is also used to bring executives up as a whole. Since the financial institutions are not to date on new developments in their fields (see, for equipped to provide all desired training in-house or in example: Thach, 2002, Rhee, 2010, and Conger and collaboration with others, non-banking training outfits Xin, 2000). Executive education is generally viewed including universities and professional institutes will as improving competencies in so far as participants be significant sources of training directly or indirectly are subsequently able to do what they could otherwise required by financial service professionals. This study not do. In the SSA context and in the context of this extends the training impact research by including study, ExEd is viewed more in terms of providing the respondents without regard to where they had their academic and professional qualifications needed by training. The use of multiple countries with varied banking sector personnel for their respective roles with educational environments also enhances the ability to their organisations. generalise findings. Falola et al. (2014) studied the effectiveness of training and development on employees and organisation compet- 3.2 Summarising the Current State of Financial itiveness in the Nigerian banking industry and concluded and Banking Services in SSA that there is a strong relationship between training and development, employees’ performance and the compet- While the foregoing has presented a thematic view of the itive advantage of the affected bank(s) through perfor- current literature on the banking sector in SSA, the most mance efficiencies, service innovations and the capacity comprehensive review of the banking sector in SSA is he to accept new technologies and techniques. report by the European Investment Bank (2013). The FSDA and the Consultative Group to Assist the findings are summarised in Table 2 below. Poor (CGAP) (2013) report on Skills Development
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Table 2: Banking in SSA: Summary from the European Investment Bank 2013 Study
General Macro-economic
Sustained growth since the Resilience during the global Banking systems comparatively mid-1990s economic crises of 2007-2009 undeveloped (except South Africa)
West Africa Central Africa
Key players Key players
Nigeria, Ghana, West Africa Economic and Monetary Cameroon, Democratic Republic of Congo. Union (WAEMU) Francophone countries.
General Outlook General Outlook
Continued growth; room for mobile phone banking; Continued growth story; significant room for financial Nigeria an island of crisis stabilised by central bank inclusion for mobile phones; Central African Cashless reforms; deposits as main funding source; significant Interbank Group (to improve access); and low assets in government securities; and improved comparative access by population relative to SSA. capital requirements.
Challenges Challenges
Political instability especially in Cote d’Ivoire; lack of Weakness of regulatory framework; insufficient credit reference bureaus; and ATM, non-ATM fraud human resources; dollarisation of economy; effects and forgery cases. of government borrowing; war effects in DRC such as breakdown of transportation; and banking at the ‘ borders’.
16 The Impact of Executive Education in Sub-Saharan Africa
General Macro-economic (continued)
Big potential for mobile $93B per year needed to address 54 countries phone-based banking deficiencies in infrastructure
East Africa South Africa
Key players Key players
Kenya, Uganda, Tanzania, Rwanda, Burundi (EAC). Angola, Botswana, Mozambique, Namibia, South Africa.
General Outlook General Outlook
Domestic markets are shallow, except in Kenya; Rapid growth in the banking sector in many countries in commercial banks dominate; common EAC the region in the past decade; banks generally well cap- Development bank; recent vibrant growth; deposits italised and in many cases have low loan-to-deposit ra- are main source of funding; and less access for SMEs. tios; overall liquidity in the banking system is adequate; and capital adequacy is well above required minimums.
Challenges Challenges
Sector depth and intermediation low; sector Skills shortages; limited access to finance for enter- concentrated in big centres; skills constraints; and prises (esp. SMEs); legal environments are unhelpful regulation and supervision. to creditors; balancing expansion with increased risk; lack of consumer information; legal environments (in- creased recovery costs in the event of default); lack of physical infrastructure; uneven regulatory functions; and corruption and uncertain policy environments.
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4. Conceptual Framework for Training Needs in the Banking Sector
Over the years, the banking sector has grown more can be provided by on-the-job training or by in-house diverse and complex resulting in a variety of skillsets or industry-specific training, post-secondary institutions needed to manage operations. The FSDA report of are better suited for providing analytical and managerial 2013 identifies the training needs and the nature of skills. This framework is confined to human resource banking in the East African context. In this section, we requirements at the operational level and not at the identify a number of dimensions that will affect training corporate executive level. At the corporate executive needs of banks across SSA. Specifically, the product level, the skills required include, but are not limited to, market offerings, level of technological integration, economic environmental scanning, strategic planning and competitive landscape have significant impact on and leadership. The salient conclusions of this analysis the skillset needed. Although the task-oriented skills are twofold:
Certified but non-credit and non-degree academic programmes and/or courses at graduate-level 1. business schools worldwide for executives, business leaders and/or functional managers.
At the first level, the task-oriented training can be best general that they attract students that are not specifically serviced at the bank level through on-the-job or in-house working in the banking sector or seeking banking as a training. The training in bank-specific policies, procedures career, thus making the offerings viable. At a third level, and operations may not fit within the mandate and there are areas that have conceptual and theoretical expectation of university courses. At the next level, there rigour but are specific to the banking sector, which lack are knowledge and skills needed in the functional areas the scalability for universities to offer a viable programme. like accounting, finance, human resource management Equally important are certain advanced task-oriented and in the comprehensive areas like leadership and training needs that cannot be easily imparted by the banks strategic management. These are well suited to be serviced through in-house or on-the-job training. This gap can be by universities and professional skills development bodies. met by professional institutes and the establishment of These fields have developed quite a bit of a theoretical specialised training and research institutions. A schematic and conceptual framework to fit well within the mandate presentation of the nature of training needs and the types of university curriculum. Furthermore, these areas are so of providers is presented in Figure 1.
Figure 1: Training Needs and Providers
Training needs Providers
Low level In-house/ on the job
Task oriented Specialised
Training Specialised needs institutions Narrow scope - only applicable Conceptual to the banking sector and theoretical knowledge base Narrow for banking sector - Universities scalable for other sectors
18 The Impact of Executive Education in Sub-Saharan Africa
Training needs are influenced by three important factors: the stage of banking development defined by the product offering and market serviced, technological interface, and 2. competitive landscape.
The characteristics of different product offerings, Figure 1 above. The top rows of Panel A and B of Table level of technological integration and the competitive 3 identify various activities of a bank. Subsequent rows space in which a bank operates lead to different skillset describe key characteristics of the activities leading to requirements (see Table 3). The type of institution best the skillset needed to fulfil those activities. The final row suited to providing the training depends on the nature identifies the training avenues. Panel C and D capture and scalability of the requirement as identified above in the technological integration and the competitive space.
Table 3: Training Needs Analysis
Panel A: Market Space – Supply Side Nature of Operating Activities Characteristics Savings, short-term Money transfer Selling standardised Wealth of Activities deposits transactions investment products management Marketing Pull Pull Push Push Strategy Return Spread between Service fee. Commission. Commission and percentage of Generator lending & deposit asset managed. rate. Nature of Risk In rare crisis, Not significant. Loss of value of Reputational risk and risk of massive withdrawal products sold resulting litigation when portfolio value leading to bank run. in customer ire. diminishes. Skillset Needed Regular banking Regular Marketing Customer acquisition; operational skill. banking financial products; relationship building; personal operational communication; and financial planning assessment; skill. regulatory framework. tools-risk profiling; and regulatory framework. Training In-house/on-the-job. In-house/on- Management school; Professional certification bodies; Avenues the-job. industry seminars. management schools.
Panel B: Market Space – Demand Side (Individuals/Groups) Nature of Operating Activities Characteristics Short/medium- Long-term – home mortgage Micro-lending of Activities term – consumer durables auto Nature of Simple lender- Facilitates decision making; provides Mentor; coach and empowering Relationship borrower, analysis of alternatives. agent. impersonal. Nature of Risk Function of income Function of housing market; interest Socio-cultural barriers; resistance to impairment. rate and income impairment. change. Skillset Needed Simple credit Understanding household Sensitivity to social justice: evaluation. budget; short-term and long-term understanding of social cost-benefit interest rate interactions; Time analysis; recognition of real option value of money –discounting and values to the rest of the banking compounding. segments from development. Training In-house/on-the-job University courses in the areas of Courses on: cost-benefit analysis; Avenues training. personal finance; introduction to managing change; group dynamics finance; economics. universities/specialised institutions.
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Panel C: Technological Integration Nature of Technological Integration Characteristics Primarily cash/cheque Cash machines network Internet banking of Integration transactions at the branch Nature of Risk Physical security of cash; Security of machines; debit Cyber attack. fraud by or with the card frauds. collusion of employees. Mitigating Factors Employee selection; job Secured private space System-based security measures. rotation; segregation of for machines; automatic dormant accounts; joint freezing on failed attempts authorisations. etc. Skillset Needed Data entry; electronic Customer training; Cyber forensics; pattern book keeping. customer service; complaint recognition; privacy protection. resolution process. Training Avenues Bank training centres. Banking sector training Sector-specific training; specialised institutions. institutions
Panel D: Competitive Landscape Nature of Competition Characteristics of Government-owned Private oligopoly Competitive market with Competition monopoly international players Managerial Focus/ Bureaucratic/risk-averse. Focus on cost and efficiency. Focus on innovative product Style offerings and service quality. Skillset Needed Knowledge of rules and Operations management. Entrepreneurialism. regulations. Training Avenues In-house Industry-specific training Management schools. colleges.
It is expected that the level of the financial institution banks in a country, or by a consortium of central banks and the services it provides will impact the training needs across the region. Such an institution can also help of the bank and its employees. Differences in responses local banks improve their in-house training to achieve to the current study questionnaires may be partly due to uniform, transferable skillsets across the region. the current operating levels of the respective financial Identification of issues relating to the specific nature institutions. In any event, at a conceptual level this of such an institution, the training areas to be catered to analysis brings to light the need to support a business by it, the mode of delivery and geographic coverage and school or institution in SSA to emerge as a centre of the interface with the existing institutions are beyond excellence for financial sector skills development. Such the scope of this report. an institution can be jointly set up by a consortium of
20 The Impact of Executive Education in Sub-Saharan Africa
5. Primary Country Research Findings
Data collected by the African Research Leads in the managers reached in each of the primary countries four primary countries took place between June 1 as well as the number of anonymous interviews with and August 30, 2016. As mentioned below, there were university officials. Following the descriptive statistics is a two primary modes of data collection: 1) quantitative preliminary overview of the major findings based on the surveys; and 2) qualitative interviews and focus groups. data collected from this sample. Table 4 below presents the numbers of employees and
Table 4: Descriptive Statistics
Cameroon Ghana Uganda South Africa Total Employees 42 50 33 24 149 Managers 35 40 34 Null 109 Gender F 21 23 19 12 75 (Employees) M 21 27 14 12 74 Gender F 9 20 19 Null 48 (Managers) M 26 20 15 Null 61 Work Tenure ≤ 2 Years 23 17 10 10 60 (Employees) > 2 Years 19 33 23 13 88 Null 1 1 Work Tenure ≤ 2 Years 7 9 9 Null 25 (Managers) > 2´ Years 28 31 25 Null 84 University 3 5 6 Null 14 Officials
Note: Manager data for South Africa was not included due to an inadequate sample size.
In terms of their demographics, based on data from ‘35 to 44’ age range, with the next largest group, 27%, Cameroon, Ghana and Uganda, 44% of employee falling into the ‘45 to 54’ range. A solid majority of respondents across the entire sample were female and managers, 77%, reported being with their organisation 56% were male. For age, 49.5% of employees reported for more than two years, and 57% reported having being in the ‘35 to 44’ range, with the next largest completed a graduate degree. portion, 24.8%, being in the ‘45 to 54’ range. Most The qualitative data was collected from employees, employees, 84%, reported being with their organisation managers and executives from financial institutions in for more than two years, and more than half, 52.3%, three primary countries, as well as from senior university reported having completed a graduate degree. officials. Focus group discussions and interviews were A majority of managers, 56%, were male. Like their conducted in each primary country, all within the employees, a majority, 54%, also reported being in the parameters laid out above, as presented in Table 5 below.
Table 5: Focus Group Interviews
Primary Focus Group with Focus Group with Focus Group Individual Interviews Country Employees University Officials Interviews with Bank with Bank Executives Executives Cameroon (n = 8) (n = 5) (n = 5) N/A Ghana (n = 6) (n = 3) (n = 5) (n = 2) Uganda (n = 4) (n = 4) (n = 5) (n = 12)
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For ease of interpretation, results are presented below (RQ) as listed above in the section III, Research with respect to level of analysis (i.e. institutional and Methodology. educational) and their corresponding research question
5.1. The Use of Executive Education in Financial Service Organisations
RQ1 What executive education courses are financial services firms using?
In a questionnaire-survey to both managers and staff at financial service firms received their training employees, data indicate that financial institutions in SSA at local universities and training institutes. 51% of tend to hire employees who already possess an executive respondents reported self-funding as the primary means education, rather than developing their employees’ of payment for their executive education, followed by qualifications by identifying them as candidates for former employers (28%), current employers (11%) and ExEd and paying for their training post-hire. Only a bursaries/scholarships (10%). Table 6 below presents small percentage (< 8%) of employee respondents a breakdown of schools’ popularity (top three) per reported completing their studies outside of their home country, based upon quantitative survey results: countries. As such, a significant majority of professional
Table 6: Principal Training Institutions
Country First Choice Second Choice Third Choice Cameroon Institut des Relations Inter- Université de Yaoundé Ecole Supérieur de Gestion nationales du Cameroun Ghana University of Ghana University of Professional Stud- Ghana Institute of Management and ies, Accra (UPSA) Public Administration (GIMPA) South Africa University of Pretoria University of South Africa Milpark Business School/University of Cape Town/ University of Witwatersrand Uganda Makerere University Uganda Management Institute Uganda Institute of Banking and Financial Services (UIBFS)
ExEd programmes that are offered at the principal programmes and courses available. Commonalities education institutions in each of the four countries found in each of the four countries included the offering were reviewed to provide an overview of the types of of the following types of programmes:
1 2 3
Diploma or certificate Specialty ExEd training Short ExEd courses on programmes programmes specialised topics
Executive MBA programmes were also offered at a As obtained from the websites and programme number of institutions that were reviewed. Howeve as brochures of each of the principal training institutions, they are degree-granting, these programmes were found Table 7 provides an overview of the programmes and to be out of scope of ExEd as defined in this report. courses offered in each category. This list is not exhaustive but instead provides a sample of programmes offered.
22 The Impact of Executive Education in Sub-Saharan Africa
Table 7: Types of Executive Education Programmes
Programme Type Programme Specialties
Certificates and Diplomas • Postgraduate Diploma in Banking (1 year-2 years) • Postgraduate Diploma in Business Administration • Postgraduate Diploma in Financial Planning • Postgraduate Diploma in Investment Management • Postgraduate Certificate in Project Planning and Management • Certified Professional Banker • Certificate in Credit Management • Certificate in Banking • Certificate in Customer Service Management
Training Programmes • General Management Programme (GMP) (3 months-1 year) • Global Executive Development Programme (GEDP) • Harvard Business School Senior Executive Programme Africa • Future CIO Programme • Executive Development Programme • Fundamental Management Programme • Leading for Innovation • Management Development Programme for Standardisation in Organisations • Programme in Advanced Strategic Management • Strategic Thinking for Business Leaders • Short Course for Emerging Managers • Finance for Non-Financial Managers
Short-Course Programmes • Banking Board Leadership Programme (one week or less) • Supervisory Skills Development • Customer Service Excellence • Bank Branch Management • ATM & Back-Office Operations • Human Resource Management for Non-HR Professionals • Sales and Customer Relationship Management • Effective Performance • Competency-Based Management • Effective Coaching & Mentoring • Strategic Human Resources Management • Corporate Governance for Organisational and Business Success • Crafting and Implementing Strategy • Corporate Social Responsibility • Driving Performance through Talent Management • Executive Leadership • Leading and Managing People • Leading Change and Organisational Renewal • Negotiation and Influencing Skills for Executives • Risk Management for Corporate Leadership • Advance Financial Management • Sales Force Management • Presentation Skills for Managers • Corporate Reputation Management • Brand Positioning • Women as Leaders
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5.2. The Impact of Executive Education on Financial Service Organisations
RQ2 What is the impact of executive education training on their businesses?
Upon examining both the quantitative and qualitative Each will be discussed below. data, the impact of ExEd on financial service firms in Table 8 presents a general overview of employee and the four primary countries were in three primary areas: managers’ perceptions about the effects of ExEd. Data 1. improvements in employee skills; relating to managers (only) in South Africa was not 2. improvements in the performance levels of available at the time of analysis and is not included in employees; and the tables, figures and discussions below. 3. increase in the perceived prestige of the organisation.
Table 8: Average Key Ratings by Employees and Managers
Rated Items Employees Managers
Cameroon Ghana Uganda South Cameroon Ghana Uganda Africa
Management Skills 3.79 4.27 3.97 4.39 3.94 4.23 4.39
Accounting Skills 3.57 3.88 3.64 4.08 3.77 3.65 4.28
Financial Skills 3.86 3.98 3.82 4.17 4.16 3.88 4.53
Financial Opportunity 3.67 3.88 3.82 3.91 4.06 3.68 4.47
Performance 3.57 4.14 3.76 4.13 4.00 3.95 4.67
Performance Enhancement 3.93 4.44 3.91 4.50 3.80 4.03 4.59
Career Preparation 3.79 4.14 3.78 4.14 4.25 4.05 4.50
Pay Satisfaction 2.88 3.18 2.84 3.48 3.68 3.68 3.97
Mobility 3.00 3.54 2.79 3.96 4.09 3.70 4.24
Overall Averages 3.56 3.94 3.59 4.08 3.97 3.87 4.41
Note: A score of less than 3.00 indicates that training is viewed as having a non-positive effect on an identified item.
In general, overall perceptions of ExEd are positive since The results show that both the employee and the average score is above 3.0. It can also be said that manager groups reported that ExEd improves employee employees in Cameroon and Uganda on average did skills which, in turn, improve overall levels of customer not see ExEd as having positive effects on their pay and satisfaction (discussed below). The main skills that both career mobility. Employees in South Africa and Ghana employees and managers believe are improved by ExEd were on average more satisfied overall with the effects are financial skills (e.g. risk assessment), management of training than their counterparts in Cameroon and skills, accounting skills and identifying financial Uganda. On the other hand, managers in Uganda were opportunities. The breakdown from both employee and more satisfied with the effects of training than their manager ratings can be seen in Figures 2-11. counterparts in Ghana and Cameroon.
24 The Impact of Executive Education in Sub-Saharan Africa
Highlights from the figures:
1. Employees and managers in Cameroon and Ghana viewed ExEd as having the most impact on management skills (Figure 2) 2. Accounting skills and financial skills were viewed favourably by employees in all countries (Figures 3 & 4) 3. Employees in Cameroon and Ghana felt that ExEd favourably impacted financial opportunities the most (Figure 5) 4. Employees and managers in Ghana rated the impact of ExEd on performance as very high (Figure 6) 5. Ghanaian employees and managers scored highly on ExEd leading to enhanced overall performance (Figure 7) 6. All employees and managers agree that training is necessary to prepare for careers (Figure 8) 7. Managers in all countries view the impact on pay and mobility more favourably than employees (Figures 9 & 10)
Figure 2: Perceived Impact of Executive Education on Management Skills
30 Camaroon Ghana Uganda South Africa
25
20
15
Frequency 10
5
0 1 2 3 4 5 1 3 4 5 Employees Managers
1. Completely disagree 2. Disagree 3. Neutral 4. Somewhat agree 5. Strongly agree
Figure 3: Perceived Impact of Executive Education on Accounting Skills
25 Camaroon Ghana Uganda South Africa
20
15 Frequency 10
5
0 1 2 3 4 5 1 2 3 4 5 Employees Managers
1. Completely disagree 2. Disagree 3. Neutral 4. Somewhat agree 5. Strongly agree
25 FSD Africa Report
Figure 4: Perceived Impact of Executive Education on Financial Skills
25 Camaroon Ghana Uganda South Africa
20
15 Frequency 10
5
0 1 2 3 4 5 2 3 4 5 Employees Managers
1. Completely disagree 2. Disagree 3. Neutral 4. Somewhat agree 5. Strongly agree
Figure 5: Perceived Impact of Executive Education on Financial Opportunity
30 Camaroon Ghana Uganda South Africa
25
20
15
Frequency 10
5
0 1 2 3 4 5 1 2 3 4 5 Employees Managers
1. Completely disagree 2. Disagree 3. Neutral 4. Somewhat agree 5. Strongly agree
Figure 6: Perceived Impact of Executive Education on Performance
25 Camaroon Ghana Uganda South Africa
20
15 Frequency 10
5
0 1 2 3 4 5 1 2 3 4 5 Employees Managers
1. Completely disagree 2. Disagree 3. Neutral 4. Somewhat agree 5. Strongly agree
26 The Impact of Executive Education in Sub-Saharan Africa
Figure 7: Perceived Impact of Executive Education on Enhanced Overall Performance
35 Camaroon Ghana Uganda South Africa
30
25
20
Frequency 15
10
5
0 1 2 3 4 5 1 2 3 4 5 Employees Managers
1. Completely disagree 2. Disagree 3. Neutral 4. Somewhat agree 5. Strongly agree
Qualitative data support the claim that ExEd improves from ExEd programmes have increased confidence in employee skills in all four of the primary countries. In their performance and an increased ability to effectively both the employee and manager focus groups, consistent serve clients and their organisations. ExEd graduates are key words included ‘innovative’, ‘professional’ and customer-focused and consider themselves to be more ‘skills’. When asked about innovation most respondents professional than their counterparts who do not possess explained that when applying the skills, they have executive education. In addition, employees have the learned graduates find novel solutions to a variety of confidence to support others within organisations. As organisational problems. one employee in Ghana said: “It enhanced my rapport with other employees and clients. For instance, there was • A manager from Uganda noted: “We look at an employee that our manager thought was difficult, but training as a very important phenomenon which upon my executive education, I learned about character we believe improves on the staff performance.” traits in human behaviour and as a result, I requested • One bank executive from Ghana noted: “We that the gentleman be included on my team for a task. have also been made aware that our graduates The knowledge from that programme has enabled me to champion a lot of innovative products and manage the gentleman excellently, now he is considered initiatives in their institutions.” as one of the best workers in our institution.” Thirdly, qualitative data from employees, managers ExEd’s greatest value across all countries was identified and executives indicate that having employees who as putting skills into action in financial organisations. possess ExEd makes the company more prestigious in the In particular, the ability to blend contemporary risk eyes of the public. Most of the respondents agreed that management thoughts and current techniques with executive education has helped to improve the image specific risk management practice in the bank was noted of the organisation and has played a key role in shaping frequently. This is seen to provide an avenue for the customer perceptions of the bank. “Investors now have bank to update its risk methodology in line with global confidence and respect our services,” one manager best practices. from Ghana stated. “The enhanced profile attracts Secondly, employees and managers almost uniformly clients and our bid for contracts,” he continued. One reported that ExEd graduates were having a positive manager from Uganda noted that organisational image impact on their respective organisations in terms of their is enhanced through the enactment of innovations performance. The majority of ratings for both groups fall from ExEd graduates, stating, “This improves on the into the ‘somewhat agree’ or ‘strongly agree’ categories organisation’s performance, hence better services, and for overall performance assessments (see Figure 7). improves the company image.” Assertions of this type In support of the quantitative performance data, were commonplace in interviews in all four primary qualitative data indicate that employees who graduated countries.
27 FSD Africa Report
The overall impact of ExEd in this study is reported to performance level of the financial institution through be quite positive across the four primary countries in professionalisation and innovation, which is felt by terms of individual and organisational performance. customers, while benefits are seen through a more Graduates of ExEd have an impact by raising the overall positive public perception of the financial institution.
5.3. The Impact of Executive Education on Customers
RQ3 What is the impact of the training on their customers?
Quantitative data shows that employees of financial both employees and managers feel that ExEd graduates institutions in SSA are primarily qualified to deal with are highly prepared for a career in the financial sector, customers via the career preparedness gained from their especially in the area of customer service. executive education. In fact, as illustrated in Figure 8,
Figure 8: Perceived Impact of Executive Education on Career Preparedness
25 Camaroon Ghana Uganda South Africa
20
15 Frequency 10
5
0 1 2 3 4 5 1 2 3 4 5 Employees Managers
1. Completely disagree 2. Disagree 3. Neutral 4. Somewhat agree 5. Strongly agree
Supporting and reinforcing these strong findings, who appear as really mastering their job.” Similarly, qualitative data with executives of financial institutions one executive in Uganda said, “ExEd results in brand also indicate a positive impact of ExEd on customer commitment by the customers, after experiencing good satisfaction. For example, one bank executive in quality services.” This commitment is increased when Cameroon noted that customers reported feeling better customer needs are properly assessed and addressed, understood and assisted by trained executives, saying which is a skill that many say ExEd graduates possess. “They receive better explanations from executives
5.4. Financial Service Organisations and Impact Measurement
RQ4 How do financial service organisations measure these impacts?
28 The Impact of Executive Education in Sub-Saharan Africa
All financial service firms in the sample report using of ExEd in their organisations. No qualitative assessment standardised objective measures to track performance tools such as open interviews with employees, coaching of employees. Managers of financial institutions use a or mentoring were reported as being used. Assessments mix of assessment tools, including formal performance are reported as typically undertaken by human resource appraisals, sales targets, complaints, customer satisfaction departments or, failing that, immediate managers. data and other objective measures to measure the impact
5.5. The Impact of Executive Education on Employees
Does executive education in the financial sector lead to enhanced career prospects, RQ5 such as higher salaries and promotions, or career advancement opportunities?
Quantitative data show somewhat mixed results for the they mostly paid for their own education, the results, at impact of ExEd on employees, particular in terms of least in terms of pay, are not what they expected in early satisfaction with pay. As illustrated in Figures 9 and 10, employment. However, managers are observably more employees are moderately dissatisfied with their pay and optimistic about both the pay and mobility prospects of only moderately satisfied with their mobility prospects. the ExEd graduates who work for them. This could be due to employee’s perceptions that, because
Figure 9: Perceived Impact of Executive Education on Pay
20 Camaroon Ghana Uganda South Africa 18 16 14 12 10 8
Frequency 6 4 2 0 1 2 3 4 5 1 2 3 4 5 Employees Managers
1. Completely disagree 2. Disagree 3. Neutral 4. Somewhat agree 5. Strongly agree
29 FSD Africa Report
Figure 10: Perceived Impact of Executive Education on Mobility
25 Camaroon Ghana Uganda South Africa
20
15
Frequency 10
5
0 1 2 3 4 5 1 2 3 4 5 Employees Managers
1. Completely disagree 2. Disagree 3. Neutral 4. Somewhat agree 5. Strongly agree
ExEd graduates’ improved skills and competencies are For example, in Cameroon, one employee noted that seen by managers as justification for promotions and “executive education allows people to assert their salary increases compared to other employees. This opinion during meetings, participate in decision-making may simply be a function of more experience on behalf and convince their employer to use their solution.” of the managers who, unsurprisingly, report having In Ghana, one employee further reported that ExEd longer tenures in their financial institutions than ExEd stimulates “a proactive mindset in resolving challenges graduates, who are at lower levels in their organisations. before they happen.” Managers are more familiar with the pay structures of The qualitative data expand upon the quantitative their companies, and thus their pay expectations are data for employers by highlighting that employers more in line with organisational realities. However, believe that ExEd graduates are more mobile in their employees at the time of this research survey did not organisations than non-ExEd graduates. They believe seem to feel that their pay is commensurate with their that ExEd improved the overall skills of their employees. ExEd training. For example, one bank executive from Uganda noted, For employers, qualitative data show that ExEd ExEd “makes the staff more marketable with their makes employees feel better prepared for their duties, improved skills, and hence more attractive” in terms of which may be one reason why they view their mobility promotions, and also to competitor banks and other favourably despite having relatively low pay satisfaction. financial institutions as potential employees.
5.6. The Impact of Executive Education on Organisational Change
RQ6 What is the role of executive education on organisational change?
Qualitative data indicate that employees who are Like their employees, employers saw a direct link graduates of ExEd programmes feel they are better between ExEd and effective organisational change prepared to handle organisational change than other management overall, but there was some dissent from employees. As one employee in Ghana stated, “The executives. ExEd was seen to prepare employees to programme has also improved policy compliance of staff handle change activities without fear and as a way to help as they understand the role of policies in institutional employees embrace change by encouraging a strategic, development and growth.” flexible mindset.
30 The Impact of Executive Education in Sub-Saharan Africa
According to both managers and executives, it helps executive in Cameroon noted that company vision employees anticipate and evaluate change. However, should drive the need for ExEd, with required education some executives in the dataset noted that ExEd may levels determined on an ongoing basis to address change not always be the driver of change, though it can assist as it occurs. change activities as they arise. Furthermore, one bank
5.7. The Perception of Executive Education Programmes
How might the impact of executive education be improved compared to RQ7 current levels?
Qualitative data indicate that employees like their All groups, including training providers, agreed that programmes but think they can be improved ExEd programmes should be primarily offered locally primarily by focusing more on practical applications through local institutions. All expressed a preference of theory in real-world settings. They also believe for this to be done at universities, but financial service that encouraging partnerships between universities firms are open to the idea of using tailored programmes and other organisations, including private training offered by private organisations. Two countries, Uganda institutions, would be beneficial. Organisations should and Cameroon, reported that private firms are starting also better assess their learning and recruitment needs to establish themselves in this regard, though they are on an ongoing basis. In particular, ExEd should focus fairly new and their enrolment is not known. more on practical applications of customer relationship Many were supportive of the notion of universities management skills, marketing skills, and HR skills. partnering with educational institutions abroad to offer Managers tend to agree with their employees in their ExEd programmes. This is seen to potentially this regard. In particular, they see a need for ExEd to improve the prestige of the local universities and as a collaborate with the financial sector to provide students way of standardising the curriculum. However, because with a more Africa-centred curriculum that focuses as many also noted that curricula should be redeveloped to much on practice as it does on theory. They also believe reflect a more African perspective of the financial sector, that the outcomes of ExEd should be better assessed caution is noted here to avoid becoming too standardised than they are currently, tracking improvements in to an outside curriculum such as those from Europe or curricula and applications over time. Training providers North America. interviewed uniformly reported that more measurement In terms of the effectiveness of ExEd graduates as is required to follow up on graduates in terms of their employees, one programme administrator noted that the salary growth, promotions, etc. to identify the true value additive effect of ExEd graduates in their organisation of ExEd over the long term. may be getting washed out until a critical mass of graduates is achieved in organisations.
5.8. Effectiveness of Executive Education: Perception Gap between Managers and Employees
The effectiveness of training is a function of how goals. Statistical analysis was conducted using chi-square it is perceived by managers and employees. Both (χ2). The test was done to determine whether there is managers and employees should agree that the training any difference between the perception of employees and programmes have accomplished the goals identified. managers about the usefulness of training. The results Effective training is expected to lead to improved are presented in Tables 9 and 10. A perception gap in performance, income enhancement and job mobility. Cameroon and Uganda was observed, whereas in Ghana Hence income enhancement and career mobility were there was no significant difference in the perception of used as proxies for successful accomplishment of the employees and managers.
31 FSD Africa Report
Table 9: Test of Differences in Perception of Income Enhancement
Hypothesis: There is no statistical difference between the employees and the employers in their perception of usefulness of training in enhancing their income. Statistical test used: χ2 Rejection region: p value <.05 Actual frequency for each cell is from the primary data collected. Expected frequencies are computed and given in parentheses. Cameroon Employees Managers Somewhat agree and strongly agree (Total of scores 4 and 5) 14 (19.64) 22 (16.36) Disagree and neutral (Total of scores 1, 2 and 3) 28 (22.36) 13 (18.64) P value .009 Hypothesis rejected Ghana Employees Managers Somewhat agree and strongly agree (Total of scores 4 and 5) 21 (24.44) 23 (19.56) Disagree and neutral (Total of scores 1, 2 and 3) 29 (25.56) 17 (20.44) P value .143 Hypothesis cannot be rejected Uganda Employees Managers Somewhat agree and strongly agree (Total of scores 4 and 5) 11 (17.73) 25 (18.27) Disagree and neutral (Total of scores 1, 2 and 3) 22 (15.27) 9 (15.73) P value .001 Hypothesis rejected
As indicated in the report, apart from Ghana, there employees’ pay. Managers tend to overrate the pay was a difference in the perception of employees and increases due to training. managers on the effectiveness of training in increasing
Table 10: Test of Differences in Perception of Mobility
Hypothesis: There is no statistical difference between the employees and the employers in their perception of usefulness of training in enhancing their income. Statistical test used: χ2 Rejection region: p value <.05 Actual frequency for each cell is from the primary data collected. Expected frequencies are computed and given in parentheses. Cameroon Employees Managers Somewhat agree and strongly agree (Total of scores 4 and 5) 17 (25.09) 29 (20.91) Disagree and neutral (Total of scores 1, 2 and 3) 25 (16.91) 6 (14.09) P value .0001 Hypothesis rejected Ghana Employees Managers Somewhat agree and strongly agree (Total of scores 4 and 5) 30 (30.56) 25 (24.44) Disagree and neutral (Total of scores 1, 2 and 3) 20 (19.44) 15 (15.56) P value .809 Hypothesis cannot be rejected Uganda Employees Managers Somewhat agree and strongly agree (Total of scores 4 and 5) 12 (20.69) 30 (21.31) Disagree and neutral (Total of scores 1, 2 and 3) 21 (12.31) 4 (12.69) P value .0001 Hypothesis rejected
As indicated, apart from Ghana, there was a perception effectiveness of training to advance employees’ careers. difference between employees and managers on the Managers tend to overrate the effect.
32 The Impact of Executive Education in Sub-Saharan Africa
5.9. Effectiveness of Executive Education: Gender Differences
Further to the differences in employee and manager to pay and promotion. This was done by contrasting perceptions with regards to pay and mobility, it was male and female respondents who agreed with the examined whether there were differences in the effectiveness of training on income and mobility (ratings perceptions of male and female employees with regards 4 and 5).
Table 11: Gender Responses on Pay and Mobility
Positive Executive Education Effects on Pay Not Agree (< 3) Male Female Agree (> 3) Male Female Cameroon 86% 48% Cameroon 14% 52% Ghana 56% 61% Ghana 44% 39% Uganda 50% 79% Uganda 50% 21% South Africa 50% 36% South Africa 50% 64% Positive Executive Education Effects on Mobility Not Agree (< 3) Male Female Agree (> 3) Male Female Cameroon 71% 48% Cameroon 29% 52% Ghana 37% 43% Ghana 63% 57% Uganda 50% 74% Uganda 50% 26% South Africa 25% 17% South Africa 75% 83%
Figure 11: Gender Difference in Pay and Mobility
Positive Rating: Effects on Mobility Positive Rating: Effects on Pay
90% 70% 80% 60% 70% 50% 60% 50% 40%
40% 30% 30% 20% 20% 10% 10%
0% 0% Cameroon Ghana Uganda South Africa Cameroon Ghana Uganda South Africa
Male Female Male Female
From the results depicted in Figure 11 above, it is observed In Cameroon, female employees are more positive about that gender difference is not very significant in Ghana training effectiveness than male employees whereas in and South Africa. However, in Cameroon and Uganda Uganda male employees are more positive about the the differences are significant but in opposite directions. effects of training.
33 FSD Africa Report
6. Executive Education and the Financial Services Sector in Secondary Countries
In addition to the research conducted in the primary Training Authority (NTA). The SSP’s strategies to countries, a mapping exercise of ExEd offerings was address skills shortages in the financial sector include conducted in six secondary countries: Kenya, Zambia, responding to the needs of the labour market, increasing Namibia, Senegal, Nigeria and Tanzania. In each the quality of technical and vocational education, country, some or all of the following has been collected: providing incentives for employers to develop employee a summary of the programmes offered; the types of skills and promoting the use of practical learning such as courses; delivery methods and course duration for the apprenticeships and internships. top five ExEd offerings (see Appendix E for full reports). Additionally, increased financial literacy and As is reflected in the findings of the primary countries, access to financial system products and services is ExEd programmes studied in the secondary countries seen as a driving force of poverty reduction and rely heavily on theoretical knowledge rather than inclusive economic growth by each of the six countries practical learning principles. examined. It can be surmised from the national strategy The notion that education is often mismatched with documents studied that financial inclusion is thought the needs of industry is a prevailing theme throughout of as a primer to the development of robust financial the world. In Africa, a 2014 PwC report, ‘Skills gap is systems. In three of the six countries – Zambia, Nigeria hampering businesses’ recruitment efforts’, surveyed and Tanzania – the focus at the national level for the over 1,300 CEOs in 68 countries and found that almost financial sector is financial inclusion rather than skills half of the organisations needed to hire in the next 12 development. This is evident in Tanzania where the months but that 63% of the CEOs in total and 96% of National Financial Inclusion Framework (2014-16) has CEOs in Africa did not feel they would find the people been developed through a public-private partnership with the skills required to fill the positions. Not only model. For these three countries, financial inclusion does the private sector recognise the skills gap, it was is seen as the first step towards improving the country’s also identified as a priority issue in each of the national financial system performance. development strategies of the secondary countries with In Senegal, professional development in general, and two of the six countries, Kenya and Namibia, citing skills the training of senior executives in economics, finance development specifically for the financial sector as a and management has flourished since the early 2000s in priority for their respective national economic growth. comparison to other countries of the region, especially Out of all six countries mapped, Namibia’s national those in Francophone Africa. Paid, short-term training agenda provided the strongest and most developed has cropped up in both public and private institutions roadmap for skills development in the financial sector. throughout the country. Management, banking and The sector is not only identified as a priority sector in the finance are offered in a fairly wide network of institutes, national strategy, Namibia Vision 2030, but a financial schools and training centres often in the context of sector strategy for 2011-2021 has also been developed formal and non-formal continuing education. The together with the Finance & Business Services Sector Senegal experience may offer potential solutions for Skills Plan (SSP), which was produced by the National replication in other countries of SSA.
34 The Impact of Executive Education in Sub-Saharan Africa
7. Conclusions
This research has validated that executive education has Though a common issue worldwide, the gap in SSA seems a positive impact overall in SSA with an ever-increasing to be a critical factor when assessing the competency number of qualified financial sector professionals and knowledge of graduates of ExEd in the financial working at financial institutions with increased ability to sector. The obstacles to implementing more practical deal with complex issues of the sector. However, both the approaches to ExEd in SSA need to be addressed by desk studies and the results of the data gathered in the training institutions and financial institutions alike. primary countries revealed that the region still has major Among these are the tendency of education providers challenges to overcome to bring it to the level attained in to continue traditional approaches to training, which much of the rest of the world. depend on theory delivered by academics, rely on Not surprisingly, the research confirmed the outdated curricula and content, and lack consultation assumptions that changes are required in the delivery with relevant industry stakeholders to identify and approach, scope and content of ExEd in order to address design relevant and practical programmes, including the needs of the sector and that financial institutions internships. Financial institutions for their part may need to better assess their skills requirements and need to be more collaborative with training providers in performance appraisal procedures in order to recruit and the design of programmes and in opening their doors retain qualified professionals. The largest discrepancy to interns. identified between employees and managers surveyed Finally, though the data suggest high levels of in the primary countries was in the areas of salaries and satisfaction with the skills imparted by the education mobility of the employees possessing ExEd credentials. providers, managers interviewed in the primary countries Whereas employees were often not satisfied with these cited a need to focus more on practical applications of issues, managers were mostly satisfied. This discrepancy customer relationship management skills, marketing has implications for employee performance and skills, and HR skills. In addition, other skills required retention which financial institutions need to address. in the financial sector, such as accounting and financial The most pressing challenge identified across all the management, are in high demand. A dearth of research conducted is the gap between the theoretical professionals qualified in these and other skills needs to and practical approach to training in executive education. be addressed by all the stakeholders.
35 FSD Africa Report
8. Actionable Recommendations
As mentioned previously, the data collected in the four As such, the following actionable recommendations are primary countries revealed that employers, employees suggested to support greater impact of ExEd on the and education providers all perceive ExEd as having a financial service sector of SSA and, in turn, improve the positive impact on the financial sector and yet agree that quality and competitiveness of the industry itself. there is still need for improvement of this type of training.
Support a business school in SSA to establish a specialised research and training institute
To improve the quality of ExEd and improve the performance of financial service professionals, FSDA should support a business school in SSA in establishing a specialised research and training institution as a knowledge hub for the financial service sector. In addition to offering specialised training programmes, this institution can act as an accreditation body and conduct benchmark studies to continually input into the body of knowledge regarding the training needs of the sector (see Appendix F for further details). Recommendation1
Undertake additional research studies on executive education
Qualitative data from both financial institutions and education providers indicated that more research is required to investigate the impact of ExEd on financial service firms. In addition, to answer the question of whether ExEd leads to an increase in the underserved market segments and whether training efforts have been used efficiently in achieving such a goal will require additional study. It is recommended that the following studies be conducted: 1) detailed and thorough research on the issue of underserved Recommendation2 market segments in SSA; and 2) a longitudinal, quasi-experimental examination of executive education programmes based in SSA (see Appendix F for further details).
Provide improved job orientation and employee incentive programmes
Employers can offer internal identification and sponsorship of potential ExEd candidates within their ranks to increase the critical mass of ExEd graduates in their organisations (i.e. create and reward organisational learning cultures). Employers can ensure that all employees meet the basic technical competencies required to provide core services by hiring personnel with these existing skillsets in tandem with providing appropriate orientation training. Mentors with ExEd can be used where appropriate. Recommendation3
Improve performance measurement practices
Employers can communicate and demonstrate the link between ExEd and performance, especially when it comes to pay outcomes, to their employees (this can be done as part of pre-existing performance appraisals via one-on-one conversations with employees and their supervisors). Strategies can also be incorporated into the performance appraisal process to address the differences in male and female perceptions relating to pay and mobility to foster equality and workplace harmony. Recommendation4 In addition, employers can track this data over time for an internal measurement of the impact of ExEd on their organisations.
36 The Impact of Executive Education in Sub-Saharan Africa
Revise curriculum of ExEd programmes
Education providers should consider redesigning their ExEd curricula to focus less on the theoretical underpinnings of their courses and focus more on practical applications of ExEd knowledge (i.e. knowledge transfer needs to be reassessed in current curricula). Where appropriate, ExEd training providers can been incentivised to develop specialised training programmes for financial institutions. As an example, accounting was identified by both managers and employees as an essential skill required at Recommendation5 all levels of operation, and training at the ExEd level could provide more focus in this area. Additionally, digital and mobile banking is on the rise and employees will require a new skillset to take advantage of the opportunities offered by new communication technologies.
Develop partnerships to enhance ExEd
Collaboration between education providers and the financial service sector is a tested means to create industry-driven curricula and, in turn, job-ready graduates. This link between education and the sector in SSA could also ensure curricula reflect a more African perspective. Additionally, international partnerships for training providers are seen as improving prestige and delivery of programmes. Developing linkages between stakeholders both locally and internationally can enhance training Recommendation6 curricula for ExEd and subsequently the impact of ExEd on the financial service sector.
Leverage ExEd instructors’ practical knowledge
Education providers should consider taking advantage of their existing human resources or attracting faculty members that are also practitioners, and develop curricula that allow ExEd instructors to leverage their work experience together with theoretical knowledge to ensure positive learner outcome. Recommendation7
37 FSD Africa Report
9. Impact Measurement and Pathway
A preliminary impact pathway of ExEd training for the the impact of ExEd. Impact can be measured in various financial sector as well as measurement indicators for stages of the education process and at both an individual the impact of ExEd training on both the individual and and organisational level. Overall improvements can be financial service firms are outlined below. assessed through observation, surveying, appraisals and As identified in the table below, both financial service target or goal setting, as well as more long-term research. firms and education providers can play a role in measuring
Table 12: Executive Education Impact Measurement Framework
Area of Measurement Measurement Measurement Metric Tools
Programme • Programme participant’s level of • Post-education surveys from Satisfaction satisfaction. organisations to participants • Post-education surveys from education providers to participants.
Acquisition of • Knowledge and skills improvement of • Direct observation of ExEd graduates by Learning graduates. managers. • Practice and skill checks. • Learning progress reporting.
Application of • Performance improvements at the • Performance appraisals Learning individual level. • Change in performance appraisal ratings over time. • Percentage of promotions.
Organisational • Prestige of organisation improved. • Target setting. Benefit • Organisational performance • Customer satisfaction surveys. improvements. • Employee satisfaction surveys. • Enhanced strategy/vision. • Rates of processes or services • Enhanced diversity. improvements. • Improved employee satisfaction. • Quasi-experimental research by • Improved customer satisfaction. management scholars, NGOs, etc.
Employee Career • Mobility. • Rate of promotions. • Pay increase. • Rate of pay increases. • Employee satisfaction surveys. • Performance appraisals.
The Impact Pathway is meant to serve as a guide to the indicators will depend on further elaboration of the measure progress made on the proposed outcomes in the Pathway, the establishment of baselines and a timeframe, table below. The actual capacity to monitor and measure and the availability of resources.
38 The Impact of Executive Education in Sub-Saharan Africa
Table 13: Impact Pathway
Ultimate Outcome: “Strengthened Impact of Executive Education on the Financial Sector in SSA.”
Assumptions from Intervention Indicators Outcome Research (Impact)
Qualitative data from • Conduct a longitudinal exami- • Longitudinal study con- Increased in- both financial institutions nation of executive education ducted. depth evidence and training providers programmes based in SSA. • Study on underserved mar- to inform indicate that more • Undertake detailed and thor- ket segments conducted. policy and research is needed to ough research on the issue of • Establishment of special- programmes investigate the impact underserved market segments ised research and training regarding ExEd of ExEd on the financial in SSA. institute promoted through- on the financial service sector. • Encourage and promote the out the FSDA network. sector. establishment of a specialised FSDA research and training institu- Strengthened tion at a business school for quality the financial services sector at assurance either the country or regional of financial level. sector training programmes and institutions.
ExEd’s greatest value • Employers can increase the • Increased number of ap- Increased across all countries was number of graduates in ExEd by plications to ExEd of from number of identified as putting skills offering internal identification qualified candidates. ExEd graduates into action in financial and sponsorship of potential • Increased number of ExEd to achieve a service firms. ExEd candidates within finan- graduates in financial sec- critical mass of cial service firms to increase the tor firms. ExEd skillsets Employees and managers critical mass of ExEd graduates • Increased performance in in financial almost uniformly in organisations. job evaluations. service reported that ExEd • Employers can ensure that tech- institutions. graduates were having a nical competencies required positive impact on their to provide core services are Increased respective organisations met by all employees and can customer
FinancialServiceFirms in terms of performance. provide appropriate orientation service training. Mentors with ExEd satisfaction can support orientation where reported. appropriate.
Qualitative data indicated • Employers can communicate • Higher retention rate of Strengthened that outcomes of ExEd and demonstrate the link be- ExEd graduates in financial performance should be better assessed tween ExEd and performance, service firms. management than they are currently, especially for pay outcomes • Decreased perceived gen- and appraisal tracking improvements in for employees (this can be der gap. systems at curricula and application done as part of pre-existing • Increased data on ExEd financial of learning over time. performance appraisals via graduates and perfor- institutions. one-on-one conversations with mance, pay and mobility. financial employees and their supervisors). • Strategies can also be incor- porated into the performance appraisal process to address the differences in male and female
FinancialServiceFirms perceptions relating to pay and mobility to foster equality and workplace harmony. • Employers can track this data over time for an internal meas- urement of the impact of ExEd on their organisations.
39 FSD Africa Report
Ultimate Outcome: “Strengthened Impact of Executive Education on the Financial Sector in SSA.”
Qualitative data indicate • Encourage education institu- • Increased inclusion of Improved that ExEd graduates have tions to develop specialised internships or practical relevancy increased performance, training programmes for finan- placements as part of the of training however, managers cial institutions where applica- training programmes. programmes and employees report ble (for example accounting and • Increased engagement and curricula that ExEd can still be mobile banking). of financial sector delivered by improved via a more • Evaluate all existing ExEd practitioners in the training education direct focus on practical programmes providing training delivery. providers. activities and learning to financial service sector em- • Increased scope of contract- opportunities. ployees to determine curricu- based training between lum deficiencies and required financial service firms and Many respondents also improvements. education providers. noted that curricula • Redesign ExEd curricula to • Increased African-centric
EducationProviders should be redeveloped focus less on theoretical under- curriculum. to reflect a more African pinnings and more on practical perspective of the applications of ExEd knowledge financial sector. (i.e. knowledge transfer needs to be reassessed in current curricula).
Education providers • Partner with major interna- • Increased number of part- Enhanced stress the role tional education providers for nerships. partnerships of international improved delivery methods and • Increased number of of education partnerships to improve content. recognised training providers both the prestige and delivery • Partner with the financial credentials in partnership internationally of their programmes and service sector to input into cur- with globally recognised and locally. qualitative data showed ricula to increase Africa-cen- training providers. that most managers were tred content and experiential • Improved integration of also supportive of this learning. best practices from other notion. countries in training design and delivery.
EducationProviders • Increased involvement of financial service institutions in programme design. • Increased use of local cases and examples.
40 The Impact of Executive Education in Sub-Saharan Africa
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42 The Impact of Executive Education in Sub-Saharan Africa
Appendix A Research Team
Monitoring and Evaluation Oversight: Mr. David Comerford, CBIE
Canadian Research Team from UNB: Dr. Jeffrey J. McNally, UNB, Canadian Research Lead (CRL)
Dr. Eben Otuteye, UNB
Dr. Gopalan Srinivasan, UNB
Dr. Joseph Abekah, UNB
African Research Team: Ghana: Professor Abendnego Feehi Okoe Amartey
South Africa: Dr. George Frempong
Cameroon: Professor Alexis Kwontchie
Uganda: Professor Wasswa Isaac Katono
MBA Students Ms. Vivian Xue, UNB
Mr. Sherman Wong, UNB
43 FSD Africa Report
Appendix B List of Universities
ASQ Cameroon Enterprise Development Central University College Centre Pilote Informatique et Polytechnique de Yaoundé Chartered Institute of Bankers, Ghana College of Business Studies Coventry University Distance Learning (FOAD) École Nationale d’Administration et de Magistrature (ENAM) École Supérieure de Gestion Douala Ghana Technology University College (GTUC) GIMPA HBX Institut des Relations Internationales du Cameroun (IRIC) Institut Supérieur de Management (ISMA) Institut Supérieur de Technologies Avancées et de Gestion Institute of Bankers Institute of Certified Public Accountant and ICPAID IRIC KNUST Kyambogo University Learning and Development Center – Stanbic Makerere University Methodist University MUBS MUK Ndejje University Oxford Brookes University Pentecost University PKFokamInstitute of Excellence
Skema BS School Lille Stanbic Bank Uganda Christian University Uganda Institute of Bankers Associations Uganda Management Institute Université Catholique d’Afrique Centrale (UCAC) Université de Yaoundé Université Pierre Mandes, France University of Agder, Norway University of Cape Coast University of Exeter, United Kingdom University of Ghana University of Lancaster University of Professional Studies, Accra
44 The Impact of Executive Education in Sub-Saharan Africa
Appendix C List of Participating Organisations
Cameroon Advanced School of Mass Communication, Yaoundé Cameroon Cameroon Enterprise Development Cameroon Centre Pilote Informatique et Polytechnique de Yaoundé Cameroon Distance Learning (FOAD) Cameroon École Nationale d’Administration et de Magistrature (ENAM) Cameroon École Supérieur de Gestion Cameroon École Supérieure de Gestion Douala Cameroon Frankfurt School of Finance and Management Bank Akademie Cameroon Institut des Relations Internationales du Cameroun (IRIC) Cameroon Institut Matanfen Supérieur Cameroon Institut Supérieur de Management (ISMA) Cameroon Institut Supérieur de Technologies Avancées et de Gestion Cameroon IRIC Cameroon PKFokam Institute Cameroon PKFokam Institute of Excellence Cameroon Skema BS School Lille Cameroon Université Catholique d’Afrique Centrale (UCAC) Cameroon Université de Yaoundé, Ghana Cameroon Université Pierre Mandes, France Cameroon University of Exeter, United Kingdom Cameroon University of Yaoundé II Ghana GIMPA Ghana ASQ Ghana Central University College Ghana Chartered Institute of Bankers, Ghana Ghana College of Business Studies Ghana Coventry University Ghana Ghana Technology University College (GTUC) Ghana HBX Ghana KNUST Ghana Methodist University Ghana Pentecost University Ghana Pentecost University College Graduate School Ghana UCC Ghana University of Agder, Norway Ghana University of Cape Coast Ghana University of Ghana Ghana University of Ghana Business School Ghana University of Ghana, Legon Ghana University of Lancaster Ghana University of Leicester Ghana University of Professional Studies South Africa Cape Town Graduate School of Business South Africa Milpark Business School (MBS), Duke Business Education South Africa Fordham University, University of Pretoria
45 FSD Africa Report
List of Participating Organisations (Continued)
South Africa Milpark Education South Africa Northwest University South Africa Standard Bank South Africa The Glen High South Africa University of Cape Town South Africa University of Limpopo Medunsa Campus South Africa University of Pretoria South Africa University of South Africa South Africa University of the Witwatersrand Uganda Institute of Bankers Uganda Institute of Certified Public Accountant and ICPAID Uganda Kyambogo University Uganda Learning and Development Center – Stanbic Uganda Makerere University Uganda MUBUS Uganda MUK Uganda MUK/UIBFS Uganda Ndejje University Uganda Oxford Brookes University Uganda Stanbic Bank Uganda Uganda Christian University Uganda Uganda Institute of Bankers Uganda Uganda Institute of Bankers Associations Uganda Uganda Management Institute
46 The Impact of Executive Education in Sub-Saharan Africa
Appendix D Secondary Country Case Studies
Senegal Kenya
15,129,000 46,050,000
13 44
13% 77%
Nigeria Namibia Zambia Tanzania
182,201,000 2,458,000 16,211,000 53,470,000
113 4 26 30
19% 75% 42% 33%
Key
Population No. of Higher Education % of Institutions with Source: World Bank Institutions Identified ExEd Programmes
47 FSD Africa Report
Kenya
Skills Development in the Financial Sector The financial sector in Kenya, East Africa’s largest economy, is a key sector in the country’s efforts to spur wealth creation, meet the needs of the growing middle class and reduce poverty levels. Over the past few years, Kenya has been working alongside national and international stakeholders to strengthen the financial sector and foster financial inclusion amongst the Kenyan people. Viewed through this lens, efforts to improve the financial sector may be seen as a valuable investment not only for the sector itself as it continues to grow and expand, but also for the country’s broader social and economic well-being.
The results of Kenya’s efforts to strengthen and modernise its financial sector have been impressive. According to the African Development Bank (AfDB), Kenya’s banking sector is the most developed in the region.1 Furthermore, results from the 2013 FinAccess National Survey demonstrated that the proportion of Kenyans totally excluded from financial services fell from 39% in 2006 to 25% in 2013.² Indeed, data collected by FSD Kenya and the Central Bank of Kenya (CBK) as part of the 2014 Findex survey showed that 75% of adults in Kenya now have a bank account, allowing them to save, spend, transfer or receive money. This impressive statistic places Kenya well above the global average and certain middle-income countries, including Chile, Brazil and India, and at the forefront of SSA countries.³
It could be surmised that these successes are due in part to Kenya’s adoption of technological innovations in the financial sector, which are often referred to as ‘Fintech’. For example, Kenya adopted M-Pesa, a mobile banking system that was initially used by cell phone users to transfer unused air minutes, which has now evolved into a cash payment service. According to the International Monetary Fund (IMF), the use of this platform has allowed Kenya to “leapfrog” traditional banking systems and provide access to financial services across income levels in a fast and convenient manner. Whereas once it was necessary to travel by bus to deliver cash to friends and/or family in rural villages, it is now possible to transfer funds via a single text message and accrue interest on used balances.4
That said, despite the Kenyan financial sector’s impressive gains, these innovations may only be ‘scraping the surface’ of what the sector is capable of achieving within the next ten to fifteen years.5 The sector will need to continue to innovate and offer new products, including additional mobile banking technologies, if it is to reach its full potential, continue to grow, and ensure the accessibility of financial services across socio-economic lines.6 Kenya will need to invest in financial sector skills development initiatives to ensure its employees have the knowledge, skills and competencies to propel the sector forward.
Given that many of the financial sector’s future innovations will likely be technology-based (i.e. moving away from bricks-and-mortar banking facilities towards additional mobile platforms), skills development initiatives will need to be focused on building digital skills to encourage and support Fintech, or technological innovations. Additionally, certain financial sector skills development efforts could be targeted towards particular segments of the population. Eighty percent of Kenya’s population is under the age of 35 years, and unfortunately, this large segment of the population has recently borne the greatest burden in terms of unemployment. Youth unemployment spiked at 35% in 2009 compared to the 10% unemployment rate of Kenyans over the age of 35.
1 African Development Bank Group (2014), Kenya – Country Strategy Paper 2014-2018, http://www.afdb.org/fileadmin/uploads/afdb/ Documents/Project-and-Operations/2014-2018_-_Kenya_Country_Strategy_Paper.pdf 2 Oxford Business Group (2016), Growth Opportunities for Kenya’s Banking Sector https://www.oxfordbusinessgroup.com/overview/further- scope-sector-robust-and-profitable-and-there-are-growth-opportunities-home-and-region 3 FSD Kenya, Edited by Amrik Heyer and Michael King (2014), Kenya’s Financial Transformation in the 21st Century, pp. 1-2. http://fsdkenya. org/wp-content/uploads/2015/12/Kenyas-Financial-Transformation-in-the-21st-Century.pdf 4 Rodolfo Maino, International Monetary Fund (2016), Leveraging Financial Technology for the Underbanked, http://www.imf.org/en/News/ Articles/2016/09/17/NA091916-Leveraging-financial-Technology-for-the-Underbanked 5 Kenya’s Financial Transformation, p. 2. 6 Growth Opportunities for Kenya’s Banking Sector.
48 The Impact of Executive Education in Sub-Saharan Africa
Kenya Continued
According to the AfDB, this is in large part due to a skills mismatch in which the education and/or training that youth receive do not properly align with the needs of the labour market.7 By focusing financial sector skills development initiatives on younger Kenyans, the country can ensure that its youth are developing skills to increase their employability and to meet the needs of one of the country’s key sectors.
Finally, skills development efforts in the financial sector will also need to be aligned with the goals of Kenya Vision 2030, a development blueprint for the period 2008-2030 that aims to transform Kenya into a “middle-income country providing a high quality of life to all its citizens by the year 2030.”8 The financial services section of the Vision states that it seeks to “create a vibrant and globally competitive financial sector in Kenya that will create jobs and also promote high levels of savings to finance Kenya’s overall investment needs.”9 More specifically, it aims to transform the banking sector by creating fewer, but larger-scale banks; developing a model for and implementing pension reform; devising a policy for the issuance of benchmark sovereign bonds; and implementing the legal and institutional reforms necessary for the promotion of Nairobi as a regional financial centre, among other goals. Many of these projects have already commenced or are in the implementation phase; however, in order to ensure their successful completion and long- term viability, it will be critical for Kenya to ensure that its financial sector training and development include skills development efforts focused on banking, informal finance, capital markets and international capital.10
University Education11 In recent years, there has been a huge expansion of the higher education sector in Kenya. While there were just five public universities in the country in 2005, today there are 22, with plans for as many as 20 new universities. Growth in the university sector has largely come about through the upgrade of already existing colleges. In addition, there are 17 private universities and 14 public and private university constituent colleges. An additional 14 institutions have letters of interim authority to operate. All of the above have the authority to award academic degrees.
Along with growth in the number of universities has come huge growth in enrolments. The latest enrolment figures for 2014 show that there were 443,783 students enrolled at universities across Kenya, more than double the 2012 enrolment number. Approximately 215,000 of those students were enrolled at private institutions.
In the non-university sector, students attend public and private technical and vocational polytechnics, colleges (teacher and medical colleges), and other tertiary-level TVET institutions (technical training institutes, institutes of technology, and technical and professional colleges). Typically, programmes offered at these institutions are two to three years in length, leading to certificates, diplomas and higher national diplomas.
Current government plans call for the establishment of at least 20 new public universities, many in underserved regions, but recent budget cuts now call those plans into question. Meanwhile, lecturer shortages continue to hinder growth in quality standards and lead to growing student-to-faculty ratios.
Kenya’s Education Sector Plan 2013-2018 is an all-inclusive, sector-wide programme that has one main goal: quality basic education for Kenya’s sustainable development. The Plan is focused on six priority areas for improvements.
7 African Development Bank (2015), Skills that lead to jobs: AfDB provides US $62 million to support Technical and Vocational Education in Kenya, http://www.afdb.org/en/news-and-events/article/skills-that-lead-to-jobs-afdb-provides-us-62-million-to-support-technical-and-vocational- education-in-kenya-14488/ 8 Government of the Republic of Kenya (2007), Kenya Vision 2030: The Popular Version, p. 1. 9 Ibid., p. 15. 10 http://www.csae.ox.ac.uk/conferences/2009-edia/papers/509-owino.pdf 11 Education in Kenya (June 2015).
49 FSD Africa Report
Kenya Continued
Executive Education Impact Measurement Framework
Priority Goals and Objectives
1 Sector Governance and To strengthen governance and accountability in the education Accountability sector through a decentralised system.
2 Access to Free and Compul- To ensure access, equity, retention and quality of education through sory Basic Education sustained provision of adequate teaching and learning materials and funds to meet other recurrent operational expenditures for all children in basic education institutions.
3 Education Quality To enable Basic Education institutions and investments programmes to continuously improve quality by maintaining standards in education provision.
4 Equity and Inclusion The overall objective of the Education Voucher Scheme is to increase enrolment, and enhance retention and participation in education of Most Vulnerable Children (MVC).
5 Relevance To provide quality curriculum and pedagogical support materials for all levels of basic and tertiary education, except at the university level.
6 Social Competencies and To nurture development of life skills, national values and principles Values for the holistic development of learners.
Executive Education Overview Forty-four universities were researched for this case study, with 34 of these institutions offering traditional MBA and EMBA programmes. In addition to these programmes, undergraduate certificates or degrees in business were also offered. Data associated with student enrolment in ExEd programmes was not readily available. Based on the data and reports we were able to obtain, it can be concluded that the government is focused on improving education at the basic and tertiary levels, as can be seen in the Ministry of Education’s priorities areas listed above.
Top Five Universities in Kenya
Rank World Name of University Programmes Offered Est. Rank
1 728 University of Nairobi Masters programmes: 1956 • Business Administration • Finance • Accounting • Project Planning and Management
Diploma programmes: • International Studies/Strategic Studies
50 The Impact of Executive Education in Sub-Saharan Africa
Kenya Continued
Rank World Name of University Programmes Offered Est. Rank
University of Nairobi Certificate programmes: (continued) • Public Relations • Purchasing and Supplies • Policy Planning and Implementation • Management Skills • Sales and Marketing • Business Management • Public Relations • Human Resource Management • Purchasing and Supplies
2 1880 Kenyatta University Masters programmes: 1985 • Business Administration • Finance • Policy and Management • Economics • Marketing Management • Human Resource Management • International Trade and Finance
Certificate and Diploma programmes: • Hospitality and Tourism Management • Public Relations
3 2441 Moi University Masters programmes: 1985 • Business Administration
EMBA programmes: • Strategic Management • Finance • Marketing • Human Resource Management • Entrepreneurship • Aviation Management
Diploma programmes: • Economics • Business Management • Agriculture Resource Management
4 2718 Jomo Kenyatta Masters programmes: 1981 University of Agriculture • Business Administration and Technology • Construction Engineering and Management • Entrepreneurship • Environmental Engineering and Management • Environmental Management and Legislation • ICT Policy and Regulation • Occupational Safety and Health • Procurement and Logistics • Statistics
51 FSD Africa Report
Kenya Continued
Rank World Name of University Programmes Offered Est. Rank
Jomo Kenyatta Diploma programmes: University of Agriculture • Applied Statistics and Technology • Occupational Safety and Health (continued)
5 3556 Maseno University Masters programmes: • Business Administration • Economics
Diploma programmes: • Business Administration • Human Resource Management • Sales and Marketing • Small and Medium-Size Enterprises • Strategic Management • Health Economics • Transport System Management • Purchasing and Supply • Total Quality Management
Certificate programmes: • Human Resource Management • Sales and Marketing • Purchasing • Management • Business Administration
References Cited • WENR Education in Kenya (June 2015), http://wenr.wes.org/2015/06/education-kenya • Kenya Universities and Colleges Central Placement Service, http://kuccps.net/ • United Nations Educational, Scientific and Cultural Organisation, Kenya, http://uil.unesco.org/fileadmin/ keydocuments/LifelongLearning/en/Kenya.pdf • Kenya, National Education Sector Plan, http://www.globalpartnership.org/download/file/fid/45908 • Kenya Report, • http://gse.buffalo.edu/org/inthigheredfinance/files/Country_Profiles/Africa/Kenya.pdf
52 The Impact of Executive Education in Sub-Saharan Africa
Namibia
Skills Development in the Financial Sector Namibia has one of the most sophisticated and mature financial systems in Africa. One characteristic of the system is that the majority of the country’s financial institutions are privately owned and they maintain strong links with South African institutions. The financial sector’s strong performance demonstrates its success in serving the formal, urban, and wealthy demographic; however, its performance among the urban poor and rural population remains inadequate. A 2007 IMF report, Namibia: Financial System Stability Assessment, including Report on the Observance of Standards and Codes on Banking Supervision, identifies the need for the development of policies that address key issues in the financial sector.12 Specifically, these challenges relate to the need for increased employment and income generation, the deficit of skilled financial professionals, the shortage of entrepreneurs, and the creation of the appropriate environment to facilitate doing business.
As part of its national development strategy, Namibia adopted Vision 2030 to become “a prosperous and industrialized Namibia, developed by her human resources, enjoying peace, harmony and political stability”.13 Vision 2030 calls for transformation of the nation to a “knowledge-based, highly competitive, industrialized and eco-friendly nation”.14 Both higher education and the financial sector were identified for their critical roles in driving economic growth and innovation to achieve national goals.
Despite having one of the most developed financial systems in Africa and a high number of financial sector graduates from both local and foreign institutions, the country still lacks skills in the specialised areas of the sector.15 As part of the Namibia Financial Sector Strategy 2011-2021: A Sector Development Document towards Achieving Vision 2030, investment in skills development is identified as necessity to achieving robust economic development. The Sector Strategy identifies this lack of appropriate and specialised skills as an increased risk of falling behind in competitiveness and stagnating financial sector growth.
To address the skills gap, the Strategy outlines a number of recommendations. These include:16 1) creating a more fulsome financial sector skills and training plan to produce highly trained professionals; 2) reviewing existing courses offered by tertiary institutions and updating or creating courses as needed; and 3) strengthening professional qualification institutes to help develop the infrastructure, institutions, systems and processes required to support expanding financial markets. The Strategy also encourages partnerships between industry stakeholders and training provider for service provision and funding.
Building on the Vision 2030 and the Sector Strategy, among other national policy plans, in 2014 the National Training Authority (NTA) of Namibia developed a Sector Skills Plan (SSP) for the Finance and Business Services Industry sector to guide skills development initiatives.17 The following is an overview of the SSP’s strategic goals:
1. Building effective stakeholder partnerships with industry, government agencies, education institutions, labour, and community organisations to address current and emerging occupational needs and skill gaps 2. Increasing access to occupationally directed learning programmes to support industry growth and labour market outcomes of the unemployed, marginalised and youth 3. Improving the efficiency and effectiveness of the vocation education and training (VET) sector to help close the skills gap
12 IMF, Namibia Financial System Stability Assessment. 13 Namibia Vision 2030, Ch. 3, p. 38. 14 Namibia Vision 2030, p. 41. 15 Making Finance Work for Africa website, ‘Namibia: Financial Sector Profile’. 16 Namibia Financial Sector Strategy 2011-2021: A Sector Development Document Towards Achieving Vision 2030. 17 National Training Authority, Finance & Business Services Sector Skills Plan 2014.
53 FSD Africa Report
Namibia Continued
4. Supporting practical skills development within firms through skills upgrading programmes and encouraging firms to input on industry skills development plans 5. Addressing unemployment and employability skills to eradicate poverty and build sustainable livelihoods 6. Establishing institutional research capacity for national skills planning to support improved decision-making in the industry
Higher Education Namibia developed the Fourth National Development Plan from 2012/13 to 2016/17 (NDP4) to lay out overall objectives, priority areas and strategic areas. The Plan recognises the significant investment and effort to strengthen education and skills in Namibia; however, it concludes that the country’s education system is “still perceived as performing below its potential.” The Plan identifies the following key concerns regarding education: (i) quality of outcomes at various levels, (ii) access to quality early childhood development, (3) vocational training opportunities, and (iv) the mismatch between the supply of and demand for skilled labour.18
The gross enrolment ratio in tertiary education was very low in 2008 (9.3%) compared to the world average (26.8%). According to Mahlaha (2012), the majority of students in Namibia (93%) are enrolled in public higher education institutions, with 53% of those applying to post-secondary programmes at the two post-secondary institutions being accepted. This suggests that there is a high demand for access to higher education, but the current institutional facilities do not have the capacity to enrol all qualified students. As such, higher education coverage remains very low, creating a serious challenge for the country.
The government spending on one tertiary student is substantially higher than the world average. Namibia government spending on tertiary students is approximately 120 times higher than GDP per capita (118.12% in 2006). World average government spending on one tertiary student is merely one third of GDP per capita in 2010 (30.5% in 2010). According to Namibia’s Minister of Finance budget statement in February 2016, “We have achieved free primary and secondary education as a basis for expanded access to education. Access to tertiary education will be further expanded through formula-based funding, increased financial assistance to students and funding for innovation, Research and Development as well as facilities for vocational training.”19
One key issue is the disconnect between industry and higher education institutions (HEIs). David Nuuyoma, CEO of the Development Bank of Namibia, expressed this opinion during the panel discussion at a public lecture held by NCHE:
There seems to be a disconnect between what was being offered by HEIs and what the labour market wanted. Vision 2030 highlighted the key areas or sectors that need to be pursued, and gaps that exist …20 HEIs will have to make a major shift to provide the human resources to exploit economic possibilities. This includes working more closely with industry. Industry will need to develop a stronger and symbiotic relationship with the HE sector and get more involved.21
Executive Education Overview Three out of four universities identified for this case study offer ExEd programmes. The top institution, University of Namibia, offers various ExEd programmes from short-course programmes and diploma programmes to Master’s degrees. It is also worth noting that Namibia University of Science and Technology’s EMBA programme offers students a unique opportunity for international exposure in Germany through the partnership with Steinbeis University, Berlin. Although student enrolment data were difficult to obtain, based on the overall low student enrolment in tertiary education, we infer that the student enrolment in ExEd programmes is very low.
18 Namibia Fourth National Development Plan, Executive Summary, p. Xiv. 19 Minister of Finance Budget Statement, pp. 6 & 26 20 National Council for Higher Education, Public Lecture, ‘Higher Education and the Labour Market’ (2012) p. 19. 21 National Council for Higher Education, Public Lecture, ‘Higher Education and the Labour Market’ (2012) p. 9.
54 The Impact of Executive Education in Sub-Saharan Africa
Namibia Continued
Top Four Universities in Namibia
Rank World Name of University Programmes Offered Est. Rank
1 2759 University of Namibia • MBA with various specialties 1992. This public • Postgraduate Diploma in university is the largest Business Administration and leading national • Diploma for New Managers/ institution of higher Middle Managers/Senior education in Namibia Managers (Public) • Executive Education Short Course
2 3911 Namibia University of • MBA, EMBA, Master of 1996 (Public) Science and Technology Leadership and Change (formerly known as Management (Revised) Polytechnic of Namibia)
3 18458 University Centre for • No executive education 1978 (Private) Studies in Namibia identified
4 19837 International University of • Management Development 2002 (Private) Management Programme
Executive Education programmes - University of Namibia
MBA with various specialties
Target Not available.
Course Duration 18 months.
Programme Module-based coursework and project. Structure Full-time on a block-release basis augmented through the school’s e-learning platform.
Programme The purpose of this qualification is to provide students with a capacity to work Objective from independently and competently in a variety of settings critical to national and global Prospectus socio-economic development. Upon completion, a student will be able to pursue a variety of career options in senior management, entrepreneurial settings and business leadership.
Postgraduate Diploma in Business Administration
Target Not available.
Course Duration 2 semesters.
Programme • Module-based coursework (includes a mix of lectures, seminars, case studies, class Structure discussions, student and expert presentations, group projects, simulation exercises and guest speakers) and final project. • Full-time on a block-release basis.
55 FSD Africa Report
Namibia Continued
Programme • Provide a solid grounding in the disciplines that form the basis of management Objective from practice. Prospectus • Development of an understanding of the fundamentals of management. • Provide skills of critical analysis in relation to management issues. • Develop basic quantitative skills and the ability to apply them in a problem-solving context. • Develop skills of communication and co-operation relevant to the students’ future career. • Provide an opportunity for relevant Level 7 Bachelor Degree graduates as well as those with less than 60% at relevant Level 8 Bachelor Degree to gain admission to the Master’s degree.
Diploma for New Managers/Middle Managers/Senior Managers
Target New managers, middle managers and senior managers.
Course Duration 1 to 2 years.
Programme • Module-based coursework (includes a mix of lectures, seminars, case studies, class Structure discussions, student and expert presentations, group projects, simulation exercises and guest speakers). • Full-time on a block-release basis.
Programme • For new managers: The purpose of this qualification is to enable new managers to Objective from make a transition to management. It seeks to broaden knowledge of organisational Prospectus dynamics as well as their capacity to manage themselves and others in pursuit of set organisational objectives. • For middle managers: The purpose of this qualification is to deepen understanding of contemporary challenges of management by exploring new approaches and practices and their integration into the broader organisational strategy. The objective of the programme is to increase personal competencies as they set divisional/functional objectives in pursuit of organisational strategy. • For senior managers: The purpose of this qualification is to enable managers to make a transition into senior management. It seeks to enhance their skillset and personal capability through the exploration of the following critical management themes: management in complex organisations, management of intricate stakeholder relationships, the development and implementation of strategy, and the pursuit of operational efficiency and strategic agility.
Executive Education Short Course
Target N/A.
Course Duration 4 to 27 days.
Programme • Strategy Level Programme: 4-day course. Structure • Management and Leadership Programme: 7-day course. • Finance Programme: 15-day term course. • Project Management Programme: Web-based short course. • Human Resource Management Programme: 27-day course. • Marketing Programme: 25-day course. • Soft Programme (Writing): 14-day course.
Programme N/A. Objective from Prospectus
56 The Impact of Executive Education in Sub-Saharan Africa
Namibia Continued
Executive Education Programmes: Namibia University of Science and Technology
MBA
Target Working professionals with at least two years’ appropriate business and managerial experience in a government, corporate, entrepreneurial, or equally relevant setting.
Course Duration 2 to 4 years.
Programme Part-time mode of study through block-release sessions. Structure Coursework, research leading to a thesis.
Programme This programme aims to develop a critical awareness and an integrated understanding Objective from of organisational management, as well as the ability to take on leadership and Prospectus management roles in public, private and not-for-profit organisations of different sizes and structures as managers and business specialists.
EMBA
Target Working professionals with at least five years’ appropriate managerial experience who are employed at senior/executive level or with a successful record in ambitious, growth-oriented entrepreneurship.
Course Duration 2 to 4 years.
Programme Part-time mode of study through block-release sessions. Structure
Programme An advanced leadership programme focused on general management, growth and Objective from innovation, aligned with the highest international standards of Executive Business Prospectus Education. Provides students with international exposure through a two-week International Management and Leadership Experience Residency in Berlin, Germany.
Master of Leadership and Change Management (Revised)
Note: Old curriculum will be completely phased out in 2019 after which students must automatically switch to the new revised programme and fulfil all requirements based on the new curriculum.
Target Professionals who are, or have the potential to become, change management leaders and who are capable of benefitting from, contributing to, and successfully completing the programme. At least three years’ work experience in a managerial capacity is required.
Course Duration • Old programme: 1.5 years. • Revised programme: 2 years.
Programme Part-time mode of study delivered by two 3-day weekend study schools per month per Structure course, supplemented by action learning sets meeting both during and outside study- school blocks. Coursework and a mini-thesis is required.
Programme The programme is fully aligned with requirements of the Namibia University of Science Objective from and Technology Curriculum Framework, the National Qualifications Framework, and Prospectus the European Foundation for Management Development. It is designed to educate and develop leaders in the public and private sectors, state-owned enterprises and non- governmental organisations to improve the efficiency, productivity and effectiveness of their organisations. This Master’s programme adds value by developing skilled, flexible and adaptable leaders to play a pivotal role in organisational change. Graduates of this programme will be able to enhance organisational competitiveness that can lead to value-added economic activity and thereby contribute significantly to Namibia’s National Development Programme and Vision 2030.
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Namibia Continued
Executive Education Programmes: International University of Management
Management Development Programme
Target • Managers seeking to upgrade their skills who have completed a three-year degree programme and worked in the same field and position for ten years or more. • Other supervisors and managers who feel that they need such a programme to upgrade their skills.
Course Duration 10 weeks.
Programme Modular-based sessions designed to be offered at three levels: new managers, senior Structure managers, and executive managers.
Programme A hands-on learning approach with reference to actual case studies and work that Objective from aims to develop skills in a number of areas, allowing graduates to add value in their Prospectus workplace.
References Cited • Making Finance Work for Africa website, ‘Namibia: Financial Sector Profile’, • https://www.mfw4a.org/namibia/financial-sector-profile.html • Mahlaha, Nteboheng (2012), A Profile of Higher Education in Southern Africa, Volume 2, Ch.10, Namibia. • Minister of Finance, Budget Statement (Feb. 2016). • Minister of Education (2006), Regulations Setting-up the National Qualifications Framework Form, Namibia. • National Council for Higher Education website, ‘About the NCHE’, • http://www.nche.org.na/about.php • National Council for Higher Education, Public Lecture, ‘Higher Education and the Labour Market’ (2012). • Namibia Vision 2030, Ch. 3. • Namibia Fourth National Development Plan, Executive Summary. • Namibia National Council for Higher Education Annual Strategic Plan 2015-2016 Report. • Namibia Qualifications Authority website, ‘Framework Overview’, http://www.namqa.org/framework/ • National Training Authority (2014), Finance & Business Services Sector Skills Plan, • https://www.nta.com.na/wp-content/uploads/2013/07/Sector-Skills-Plan-Finance-Business-Services.pdf • International Monetary Fund Namibia, Financial System Stability Assessment (prepared by the Monetary and Financial Systems and African Departments, (approved by Ulrich Baumgartner and Abdoulaye Bio-Tchané Februa).
58 The Impact of Executive Education in Sub-Saharan Africa
Nigeria
Skills Development in the Financial Sector According to the World Bank, Nigeria is currently at a crossroads. On one hand, Africa’s largest country is characterised by strong economic growth, and strong job and income opportunities; on the other, workers are trapped in traditional subsistence activities with little to no job or income security.22 In order to bring about a convergence of these “two Nigerias”, the World Bank suggests Nigeria must create between 40 and 50 million more productive and higher- income jobs by 2030. In order to transition to a more productive economy, the nation must in turn focus on ensuring Nigerians are equipped with the requisite higher-order skills.23
Indeed, skills development is a policy priority for the Government of Nigeria. As noted in the Nigeria Vision 20:2020 Economic Transformation Blueprint, a long-term plan that optimises human resources is a necessary input for the country’s economic growth and development.24 Nigeria Vision 20:2020 highlights the need for education and skills for employability, and the various measures Nigeria requires in order to ensure its citizens have the skills needed for productive employment. These include the development of life skills programmes and a labour market information system.25
With specific regards to financial skills, Nigeria has also demonstrated its commitment, both in terms of skills development for financial inclusion and for the financial sector writ large. Beginning with skills development for financial inclusion, in 2011, as part of the Maya Declaration, the Central Bank of Nigeria (CBN) committed to reduce the percentage of Nigerians excluded from receiving or accessing financial services from 46.3% in 2010 to 20% by 2020. Nigeria also developed and launched the National Financial Inclusion Strategy in 2012. Part of the strategy is focused on providing consumer protection through financial literacy as, according to the CBN, “it is only when the vast majority of the Nigerian population is financially literate that they can participate in the formal financial system … and thereby contribute to the financial and economic development of Nigeria.” In addition to and as part of the Financial Inclusion Strategy, the CBN also developed and launched the National Financial Literacy Framework (2013). The Framework aims to “promote financial literacy to drive the national financial inclusion policy that will ultimately promote economic growth” and identifies key activities such as financial literacy awareness campaigns, school outreach and mentoring programmes.26
In addition to developing basic financial skills development initiatives, Nigeria has also focused on upskilling the financial sector itself. To illustrate, the Financial System Strategy (FSS) 2020 is premised on the notion that the “world is rapidly changing, and Nigeria/Africa must claim the 21st century.” It argues that an integrated financial system is critical if Nigeria is to propel both itself and the broader African economy forward. FSS 2020’s overall strategy framework is based on a three-pronged approach, which includes (1) strengthening domestic financial markets, (2) enhancing integration with external financial markets, and (3) building an international financial centre.
Financial skills development intersects two of these three pillars. With regards to the first pillar – strengthening the domestic financial markets – the Government of Nigeria plans to develop competence and skills for the financial services industry. In other words, it seeks to ensure employees in the financial sector have the requisite knowledge and skills base to strengthen the sector and ultimately spur economic growth in Nigeria. As for the third pillar – building an international financial centre in the medium to long-term – Nigeria intends to leverage financial strengths in order to attract global players. Specifically, the Government of Nigeria intends to create “a pool base of knowledgeable and skilled personnel” and create “sophisticated market operations.”
22 Rumney, Emma (2016), World Bank urges Nigeria to focus on skills and productive jobs, http://www.publicfinanceinternational.org/ news/2016/03/world-bank-urges-nigeria-focus-skills-and-productive-jobs 23 Ibid. 24 National Planning Commission (2009), Nigeria Vision 20:2020 Economic Transformation Blueprint http://www.nationalplanning.gov.ng/ images/docs/NationalPlans/nigeria-vision-20-20-20.pdf 25 Ibid. 25 Central Bank of Nigeria, Financial Literacy Overview. https://www.cbn.gov.ng/Devfin/finliteracy.asp
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Nigeria Continued
The skilled personnel will be required in order to achieve another desired outcome of the third pillar, namely providing world-class communication and technology infrastructure in the financial sector, something that cannot be achieved without a significant investment in human capital.27
University Education Based on our research we have found that there is a lack of development in the education sector. Articles from the news source leadership.ng suggest that results from the efforts of the Nigerian Educational Research and Development Council (NERDC) are lacking. In an article on education sector reform, Professor Ibrahim Kolo (2015) explains:
The challenges of the lack of the political will and government commitment; gross underfunding; dysfunctional policy structure and system; inadequate and dilapidated infrastructure; outdated teaching, learning and research facilities; lack of desirable attention to teacher education and professional development; and appropriate curriculum concerns; are just some of the fundamental issues needing to be addressed by President Buhari’s Education Minister.
Similar to the other secondary nations, we have concluded that Nigeria’s current focus is still on the creation, dissemination and development of a basic education curriculum. Very little, if any, government resources are spent on the refinement of higher education, including executive education.
Executive Education Overview Out of 113 education facilities that were identified, we could only confirm that 21 had potential ExEd programmes. Due to a lack of a strong online presence, there are limitations to the information that could be obtained through our desk research review. However, external news and other information suggest that there is a lack of development within the region to support higher education.
Top Five Universities in Nigeria
Rank World Name of University Programmes Offered Est. Rank
1 1366 University of Ibadan MBA/EMBA, Postgraduate Diploma in 1962 Management
2 1723 Covenant University Ota MBA, various MA programmes for business 2002
3 2038 Obafemi Awolowo University MBA/EMBA 1961
4 2257 University of Lagos MBA/EMBA, various MA programmes for 1959 business
5 2437 University of Nigeria No executive education identified 1955
27 Professor Chukwuma C. Soludo (2007), Nigeria’s Financial System Strategy 2020 Plan – “Our Dream”, presentation to the FSS 2020 International Conference.
60 The Impact of Executive Education in Sub-Saharan Africa
Nigeria Continued
Executive Education Programmes - University of Ibadan
MBA/EMBA with various specialties & Postgraduate Diploma in Management
Target The executive MBA is a flexible programme designed to accommodate business executives’ schedules.
Course Duration Full-time, part-time.
Programme Structure N/A.
Programme Objective from Prospectus N/A.
Executive Education Programmes - Covenant University Ota
MBA/MA programme
Target N/A.
Course Duration 2 years.
Programme Structure Class-based.
Programme Objective from Prospectus N/A.
Executive Education Programmes - Obafemi Awolowo University *Information online unobtainable due to website outages and broken pages.
Executive Education Programmes - University of Lagos
MBA/EMBA/MA programme
Target MBA: At least 3 years of work experience at a managerial position. EMBA: At least 7 years of work experience at a managerial position.
Course Duration Varies, details not available.
Programme Structure Class-based, FT/PT/weekend.
Programme Objective from Prospectus N/A.
Executive Education Programmes - Obafemi Awolowo University *Information online unobtainable due to website outages and broken pages.
References Cited • Nigerian Educational Research and Development Council, http://nerdc.ng/ • Prof. Ibrahim A. Kolo (July 2015), Education Sector Reforms and Road Map For Buhari Government, http://leadership.ng/features/448136/education-sector-reforms-and-road-map-for-buhari-government
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Senegal
Skills Development in the Financial Sector The professional development area in general, and executive education (economics, finance, and management) in particular developed mostly from the year 2000 onward. Many challenges arose at that time, such as globalisation, aligning standards in post-secondary education (for example, the Bologna process), and international regulations, among others. For Senegal, however, the context was particularly favourable for the development of executive education: the government was becoming more liberal with encouragement from private citizens (mainly from diaspora); there was unprecedented development of the banking network; there was a political crisis in Cote d’Ivoire, which resulted in many financial organisations and institutions relocating; changing attitudes and needs of clients forced financial and banking institutions to diversify their service portfolio, and renew or develop their executives’ skills; and there was less access to universities in the North.
Skills become outdated very quickly in the area of executive education and so there is a large need for professional development for finance, banking, and investing specialists. To respond to that need, some universities abroad relocated their faculties of finance and management to Dakar (e.g. BEM28), and some banks and financial institutions developed training centres (e.g. CESAG29 for BCEAO30 since 1996). Thus, obtaining a Master’s degree, an MBA or a DESAG31 in finance or management is slowly becoming a necessity and even a trend among professionals.
Ever since the 2000s there has been the emergence of a network of institutes, schools and management/banking/ finance training centres, however compliance and quality control by governments and academics tend to be a real challenge. The following is short snapshot highlighting executive training at the post-secondary level. It is also highlighted that while education providers are very diverse, most training schools offer a management and finance component and also add – officially or not – professional development as part of an Executive Centre.
Executive Education For every institution below the following data were gathered: first, the institution’s name and a brief introduction of its training offerings; then the institution’s website URL and main programmes related to finance – with brief insight/ links if necessary; and finally any other information of note. The order of institutions in the following is inspired by: 1) the importance the institution gives to capacity-building and executive education; 2) how old it is; 3) its reach at the national and regional levels, and 4) the elitism of its exit profiles in management and finance.
Top Five Universities in Senegal32
Rank World Rank Name of University Programmes Offered Est. 1 2616 Université Cheikh Anta Diop de Various Masters programmes, Professional 1957 Dakar Licence programmes 2 11552 Université Gaston Berger de Saint Various Masters programmes, Professional 1990 Louis Licence programmes 3 12753 Centre Africain d’Études MBA, various Masters programmes, Execu- 1985 Supérieures en Gestión Senegal tive Doctorate in Business Administration 4 16264 École Supérieure Multinationale No executive education identified 1981 des Telecommunications 5 16404 École Inter-Etats des Sciences et No executive education identified Medecine Veterinaires
28 Please see below. 29 Centre Africain d’Études Supérieures en Gestion - African Centre for Advanced Studies in Management. 30 Banque Centrale des États de l’Afrique de l’Ouest. 31 Diplôme d’Études Supérieures en Administration et Gestion. 32 Retrieved on 18-09-2016 at: http://www.au-senegal.com/universites-et-ecoles-de-formations,3218.html
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Senegal Continued
Centre Africain d’Études Supérieures en Gestion (CESAG) CESAG is an international public institution created in 1985 and based in Dakar. Since its inception, it’s played the role of an alternative to management schools in northern countries. Its mission is to train private and public companies, governments and organisations executives. It is a post-university institution of professional development for executives in management, and trainers of management as well as applied research training institutions. Among the four curricula offered, two focus on finance and company management, with faculties as follows: Institut Supérieur de Comptabilité, de Banque et de Finance and Institut Supérieur de Management des Entreprises et Autres Organisations.
Centre Africain d’Études Supérieures en Gestion (CESAG) http://www.cesag.sn/index.php#
Programmes Specialisations Offered Length/Credits or Entry Profile (if Available Online)
Licence (L1, L2, L3) • Economics. 1 semester (60 credits). (LPGEO) • Management. 1 semester (60 credits). • Accounting. 1 semester (60 credits).
Master 1 and Master 2 • Banking, finance, accounting, controller and 5 sessions (120 credits). audit (CESAG BF-CCA). • CESAG Grande École. • CESAG Executive Education. • Masters project in banking and finance (PMBF).
PhD (Bologna process) • Banking, finance, accounting. Entry profile: 3 years after high • Controller and audit. school diploma.
MBA/Masters degree • Banking, finance, accounting. Entry profile: 4 years after (remotely) • Controller and audit. high school diploma with work • Business administration. experience.
Executive Doctorate (Upon project). Entry profile: MBA + full work (in partnership) experience.
Of note: In partnership with the Business Science Institute, CESAG created a new programme: the International Executive Doctor- ate in Business Administration, to train executives holding an MBA, equivalent degree or a long work experience.
CESAG hosts remote training programmes for MBAs and Masters, aimed more at professionals (International MBA at Paris Dauphine; Masters Degree in business administration at IAE/Université de Poitiers ‘MAE 2’; etc.).
Bordeaux Management School (BEM) de Dakar Ever since it relocated to Senegal in 2008, BEM Management School, and particularly BEM Executive Centre, has had as a mission to help companies and organisations by guiding professionals to sustain high performance and accountability throughout their career. BEM Executive Centre offers conferences and certifying programmes, and welcomes new Senegalese and African high school graduates.
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Senegal Continued
Bordeaux Management School (BEM) de Dakar http://www.bem.sn/index.php
Programmes Specialisations Offered Length/Credits or Entry Profile (if Available Online)
BEM Executive • Certificat Professionnel des Affaires (CPA) – Certificates typically do not Centre Business professional certificate. exceed 2 sessions. • Certificat Préparatoire aux Études de Gestion (CPEG) – Management studies preparatory certificate. • Accounts manager.
Techniques d’Administration et de Gestion des N/A. Executive Bachelors Entreprises (TAGE) – Business administration and management techniques.
Master 1 Business administration and management. N/A.
Master 2 • Banking and finance techniques. N/A. • Entrepreneurship and innovation. • Audit and controller techniques.
Specialised Masters • Management supply chain and N/A. Degrees acquisition accounting and budgeting techniques.
Université Catholique de l’Afrique de l’Ouest UCAO is attached to Collège Saint Michel in Dakar, and is among the first vocational and management high schools in Senegal. This influences its clients as the university attracts more young high school graduates and fewer professionals. UCAO graduates, however, enter the workforce directly. UCAO’s training is modeled on the Bologna model.
Université Catholique de l’Afrique de l’Ouest http ://www.ucao-uut.tg
Programmes Specialisations Offered Length/Credits or Entry Profile (if Available Online)
Licences • Finance. 6 semesters • Controller and accounting. (180 credits). • Socio-economic administration. • Applied econometrics. • Development economics.
Masters • Economics and management sciences. Licence + 4 semesters • Finance, audit and management controller. (120 credits). • Management of decentralised financial systems and development.
PhD Same fields. Masters + 6 semesters (180 credits).
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Senegal Continued
Faculté des Sciences Économiques et de Gestion of Université Cheikh Anta Diop in Dakar (FASEG) Université CAD in Dakar is a public university, as is the Faculté des Sciences Économiques et de Gestion (FASEG). The latter was created by decree in 1970 and in 1994, following national consultations on higher education in 1993. FASEG programmes are essentially aimed at new high school graduates of management with a vocational and technical background. When it started, the curriculum was more general and centred on economics, but today, FASEG offers different curricula that are more professional and more focused on management, making its graduates ready to work as soon as they have completed their studies.
Faculté des Sciences Économiques et de Gestion Université Cheikh Anta Diop in Dakar (FASEG) http://faseg.ucad.sn/index.php?option=com_frontpage&Itemid=1
Programmes Specialisation Offered Length/Credits or Entry Profile (if Available Online) Diplôme Universitaire de Gestion (DUG) Accounting and finance. 2 years. • Economics. 2 years Licence • Management. (3rd year common with Masters). • Mathematics and decision. Masters: • Financial management. 2 years. Management or analysis • Analytical accounting. • Business accounting. • National accounting. • Applied microeconomics. • Public finance economics. • Management and banking practices. http://faseg.ucad.sn/index.php?option=com_content&task=view&id=39&Itemid=65 PhD • - Teaching & research. N/A. http://faseg.ucad.sn/index.php?option=com_content&task=view&id=40&Itemid=66
Unité de Formation et de Recherche en Sciences Économiques et de Gestion of Université Gaston Berger de Saint-Louis Both faculties of management and economics at UFR, Université Gaston Berger de Saint-Louis, offer academic training aimed at new high school graduates, but also offer professional development aimed at professionals who desire to maintain their competitiveness in the workplace.
Faculté des Sciences Économiques et de Gestion Université Cheikh Anta Diop in Dakar (FASEG) http://faseg.ucad.sn/index.php?option=com_frontpage&Itemid=1
Programmes Specialisation Offered Length/Credits or Entry Profile (if Available Online) Professional =licence • Management. N/A. (professional development / • Management and business computer executive education) sciences. Masters • Audit – Controller of management. (professional development / • Banking – Finance. N/A. executive education) • Rural development and cooperation. • Project management.
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Senegal Continued
Institut Supérieur de Management (ISM) de Dakar ISM is defined as an excellence hub and the first business school in Senegal. Institut Supérieur de Management (ISM) de Dakar delivers specialised programmes in management as part of Senegal and West Africa economic elites training. The institute has six campuses in six regions of the country. Its clients are more professionals – state agents or private – but ISM does not specialise in ‘finance’.
Institut Supérieur de Management (ISM) de Dakar - (six campuses in Senegal) http://www.au-senegal.com/universites-et-ecoles-de-formations,3218.html
Programmes Specialisations Offered Length/Credits or Entry Profile (if Available Online)
Professional licence (Unspecialised finance, management). N/A.
Professional Masters (Unspecialised finance, management). N/A.
http://www.au-senegal.com/universites-et-ecoles-de-formations,3218.html
Institut Supérieur de Finance The Institut Supérieur de Finance (ISF) is a higher education institution contributing to the training of highly qualified finance executives in various areas of financial management. It specialises in banking and high finance professions.
Institut Supérieur de Finance http://www.au-senegal.com/universites-et-ecoles-de-formations,3218.html
Programmes Specialisations Offered Length/Credits or Entry Profile (if Available Online)
• Finance – Accounting. (60 credits). Licence • Finance and public accounting. • Quantitative methods applied to management and banking, finance, and insurance.
• Banking, finance (M1 BF). High school diploma + 4 years. • Public finance (M1 FP). Master 1 • Audit and management controller (M1 ACG). • Financial engineering (M1 IF). • Actuarial studies (M1 A).
• Audit and management controller. High school diploma + 5 years. • International banking/finance –Banking/finance and risks management. Master 2 • Islamic finance. • Taxation. • Public management and finance. • Financial engineering. • Microfinance.
Seminars aimed at professionals, managers and supervisors: ‘La Réforme Budgétaire: La Gestion des Finances Publiques Axée sur les Résultats’ ‘Évaluation Des Entreprises Financières et Non-Financières’, ‘Gestion de Trésorerie et Négociation des Conditions de Banque’
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Senegal Continued
Université Alioune Diop de Bambey In the list of programmes offered at Université de Bambey, there is the following: the Licence en Économie Appliquée et en Finance Comptabilité within the Unité de Formation et de Recherche UFR ECOMIJ. The Université de Bambey is, just like Université de Thiès, practically the sole professional development hub in its geographical area.
Unité de Formation et de Recherche UFR ECOMIJ - Université de Bambey http://www.uadb.edu.sn/images/pdf_formation/formations_vrai.pdf
Programmes Specialisations Offered Length/Credits or Entry Profile (if Available Online)
Licence • Applied economics. N/A. • Finance, accounting.
École Nationale d’Administration (ENA) of Senegal ENA is a public school, which since 2011 has been offering professional development for government employees. ENA trains administrative executives in areas such as management and finance (economic investigations, cash flow, taxes and domains, inspectors and customs, inspectors and controllers of taxes and domains). http://www.sencampus.com/ fiches/ena/
École Nationale d’Administration (ENA) of Senegal http://www.sencampus.com/fiches/ena/
Programmes Specialisations Offered Length/Credits or Entry Profile (if Available Online)
Cycle B • Economic investigations. Professionals of public service (administrative executives • Cash flow, taxes and domains. (holding a high school diploma). from hierarchy B) • Inspectors and customs. • Inspectors and controllers of taxes and domains.
Cycle A • Economic investigations. Cycle B agents + 5 years of tenure in • Cash flow, taxes and domains. Senegalese public service. • Inspectors and customs. • Inspectors and controllers of taxes and domains.
Université de Thiès The Université de Thiès has a school called Unité de Formation et de Recherche en Sciences Économiques et Sociales (UFR SES) that offers a Master’s degree in banking, finance, and insurance. The university is open to professional development for people wishing to train or take on more responsibility-bearing and decision-making jobs. https:// www.univ-thies.sn/index.php?option=com_content&view=article&id=310&Itemid=142
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Unité de Formation et de Recherche en Sciences Économiques et Sociales (UFR SES) Université de Thiès https://www.univ-thies.sn/index.php?option=com_content&view=article&id=310&Itemid=142
Programmes Specialisations Offered Length/Credits or Entry Profile (if Available Online)
DUT Licence Master Banking, finance and Diversity of entry profiles. insurance.
Université de Ziguinchor Université de Ziguinchor has yet to publish its training programmes online, however it was noted that there is a department of training and research in socioeconomics (Unité de Formation et de Recherche en Sciences Économiques et Sociales - UFR SES). From this it can be assumed that there will be similar programmes as found at Université de Thiès (Master in banking, finance and insurance) or Université de Bambey (licence in applied economics and accounting finance). http://www.sencampus.com/fiches/universite-de-ziguinchor/
Institut Supérieur de Commerce et de Management (ISCOM) ISCOM has five faculties with options in financial engineering and business engineering.
Institut Supérieur de Commerce et de Management (ISCOM) http://www.au-senegal.com/institut-superieur-de-commerce-et-de-management-iscom,3417.html
Programmes Specialisations Offered Length/Credits or Entry Profile (if Available Online)
Engineering • Financial engineering. N/A. • Business engineering.
Institution Sainte Jeanne d’Arc Post Bac This institution’s main curricula include a component in business administration and management. http://www.au-senegal.com/institution-saint-jeanne-d-arc-post-bac,3430.html
Institut Africain de Management
Institut Africain de Management http://www.au-senegal.com/institut-africain-de-management-iam,3402.html
Programmes Specialisations Offered Length/Credits or Entry Profile (if Available Online)
• Marketing. • Finance. • Accounting • Communications. • Human resources. • Transport/logistics. • Quality management.
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École Supérieure de Technologie et de Management (ESTM) ESTM offers a professional licence in management sciences (LPSG) with four options, including two in finance accounting and banking insurance. http://www.sencampus.com/formations/licence-professionnelle-en-sciences-de-gestion-lpsg-estm/
Université du Sahel (UNIS) Established in 2000 in Senegal, UNIS has five faculties, including a faculty of economics and management. http://www.sencampus.com/fiches/universite-du-sahel/
École Supérieure Polytechnique (ESP) ESP has three programmes, including a management curriculum. To get into ESP, new high school graduates must pass an exam. However, access to engineering programmes (high school diploma + 5 years) for managers in business management and doctorates can be done. ESP hosts professionals in training or in retraining as well.
École Supérieure Polytechnique (ESP) http://www.sencampus.com/fiches/esp/
Programmes Specialisations Offered Length/Credits or Entry Profile (if Available Online)
Engineering Business management. High school diploma + 5 years.
PhD Business management N/A. (research, teaching).
Université de l’Atlantique Its training programme contains a management sciences component. http://www.au-senegal.com/universite-de-l-atlantique,3699.html
Office Nationale de Formation Professionnelle (ONFP) It may seem completely informal, however, ONFP offers custom-made training. This organisation offers training to various stakeholders including: professionals, job seekers, companies, communities, government, private organisations, etc.
These training programmes align with the objective of acquiring professional qualifications within professional categories. These modular training programmes are accredited. It is also possible to obtain these credentials through accreditation of prior learning experience. http://www.onfp.sn
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Tanzania
Skills Development in the Financial Sector Skills development is a policy priority in Tanzania. Recently, the country introduced the new National Skills Development Strategy (NSDS 2016-2021), which seeks to increase the supply of skilled workers in key industries to support the country’s economic growth and job development.33 This strategy is of vital importance, given the high rates of unemployment amongst Tanzanian youth, as well as the country’s skills gap, or shortage of available skills required by the Tanzanian labour market.34 Indeed, addressing the skills shortage and ensuring the 800,000 youth entering Tanzania’s labour market each year are able to find jobs will be critical if the country is to achieve its goal of reaching middle-income status by the year 2025.35
Financial skills are lacking in Tanzania on multiple fronts. Beginning with basic financial literacy amongst Tanzanians, it is estimated that more than half of Tanzanian adults face financial exclusion, having no access to both formal and informal financial services. Specifically, only 11% of Tanzanians had a bank account in 2013.36
Within the financial sector itself, the skills of employees are also deemed to be lacking as evidenced by the general skills shortages within high-growth sectors (including the financial sector), as well as the dissatisfaction and distrust reported by Tanzanians who do access financial services. According to a report by Consumers International, financial sector consumers in Tanzania reported a low level of understanding regarding the terms of their contracts, with 72% reporting not receiving enough time to read and fully understand their loan agreement and 68% suggesting their loan officer did not sufficiently explain the terms and conditions of the contract.37 This may suggest the need for financial sector training. Additionally, the sector, like many other industries, faces persistent skilled labour shortages. A 2010 U.S. State Department study found that though the number of university graduates in fields such as business management and information technology continues to grow, foreign investors in Tanzania continued to report insufficient local labour to fill management and administrative positions.38 As national strategic documents the NSDS 2016-20201 and the Tanzania Development Vision 2025 suggest, skills development in Tanzania is of vital importance in many sectors, including finance.
University Education The Tanzania Development Vision 2025 envisages the country to be “a nation with high quality of education at all levels; a nation which produces the quantity and quality of educated people sufficiently equipped with the requisite knowledge to solve the society’s problems, meet the challenges of development and attain competitiveness at regional and global levels”.39
33 World Bank (June 16, 2016), New Skills Development Programme to Improve Employment Prospects for 30,000 Tanzanian Youth, http:// www.worldbank.org/en/news/press-release/2016/06/16/new-skills-development-programme-to-improve-employment-prospects-for-30000- tanzanian-youth 34 World Bank Group, Hong Tan et al., (2016), Skill Use, Skill Deficits, and Firm Performance in Formal Sector Enterprises: Evidence from the Tanzania Enterprise Skills Survey, 2015, http://documents.worldbank.org/curated/en/255561467996733320/pdf/WPS7672.pdf 35 World Bank, Sajitha Bashir, (July 16, 2016), Tanzania: How boosting work skills through education can lead to economic diversification, http://blogs.worldbank.org/education/tanzania-how-boosting-work-skills-through-education-can-lead-economic-diversification 36 Clinton Global Initiative (August 3, 2013), Fighting Financial Exclusion in Tanzania,https://www.clintonfoundation.org/blog/2013/08/03/ fighting-financial-exclusion-tanzania 37 Consumers International (2013), Credit Reporting & Financial Literacy: A Pilot Project in Tanzania, p. 3, http://www.consumersinternational. org/media/1326703/project_description_credit_reporting_in_tanzania.pdf 38 U.S. Department of State, Bureau of Economic, Energy and Business Affairs (2010), 2010 Investment Climate Statement – Tanzania, http:// www.state.gov/e/eb/rls/othr/ics/2010/138153.htm 39 Tanzania Development Vision 2020, http://www.mof.go.tz/mofdocs/overarch/vision2025.htm
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Tanzania Continued
The nation’s 2016/17 to 2020/21 strategic plan identifies the following goals:40 • Deepen institutionalisation of quality assurance activities and mechanism • Strengthen ICT policy and planning, infrastructure, resources and systems • Increase higher education participation rate • Promote establishment of different higher education delivery modes including online delivery • Improve collaboration with internal and external institutions • Enhance institutional image, communication strategy and branding
The gross enrolment ratio in tertiary education is very low (3.6%, 2013) compared to the world average ratio (32.9%, 2013). This points to the thought that tertiary education is not widespread. According to the TCU strategic report, the government plans to raise the higher education enrolment rate to 4% by June 2021 and equip more students with skills to drive economic development. In particular, the goal is to support and improve student enrolment in science- related programmes from 27.6% in 2012/2013 to 40 % by June 2021.
According to the Tanzania Commission for Universities (TCU), there is a strong link between government, academia, and foreign affiliates, but a weak linkage between academia and industry. The most dominant forms of university industry linkages in Tanzania have remained traditional. They include internships, consultancy services and inviting guest lecturers from the industry to talk about a specific technical issue from an experience point of view. In order to respond to the weak linkage, the TCU plans to develop a framework to create a linkage between higher education and industry.41
Tanzania established a National Qualifications Framework in 2010 to integrate education and training into a unified structure of recognised qualifications. This qualification framework is “based on the need to standardize and harmonize the country’s qualifications by putting in place a system for setting standards defining expected knowledge, skills and understanding needed for labour market employment, self-employment or further education.”42
Executive Education Overview Tanzanian universities appear to embrace traditional EMBA and MBA programmes and it is seen that each programme has different objectives. For instance, one programme focuses on strengthening skills in business management and puts more emphasis on the needs at senior levels, another programme may sharpen future global business leaders through the knowledge of current international issues, and other programmes provide general training and specialised training in career-oriented areas. Although the content of these programmes differs, generally speaking the course styles are traditional coursework plus dissertation.
Thirty universities were identified for this case study with approximately one-third offering the traditional MBA and EMBA programmes. In addition to these programmes, undergraduate certificates or degrees in business were also offered. Based on the information available, we believe these certificates or degrees will enable students to successfully enter the workforce or enrol in graduate programmes.
Within the 30 schools identified in operation within Tanzania, we identified ten that have ExEd programmes. This shows a strong ratio of education facilities to ExEd programmes. This also indicates that there has been sufficient demand and adoption of postgraduate and continued education. However, the schools have not matured far enough in their ExEd offerings to develop specialised diploma programmes targeted at the demands that may be generated for executives and professionals who want to augment their education.
40 TCU Rolling Strategic Plan 2016/17 to 2020/21, http://www.tcu.go.tz/images/documents/TCU_Rolling_SP_2015_16_2020_12_May_2016.pdf 41 Ibid. 42 NQF final draft report (2010), http://www.idea-phd.net/images/doc-pdf/TCU_NQF_Final_Report_ March_2010.pdf
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Tanzania Continued
The programmes offered are full programmes which target a general knowledge base, versus specialisation which we were finding within some of the more mature countries.
Data associated with student enrolment in ExEd programmes were difficult to find. Based on the low gross enrolment ratio in overall tertiary education, we can infer that the enrolment in ExEd education is also very low. We did determine that the majority of the programmes are classroom learning and can be taken full-time (one year) or part-time (longer). Distance or blended learning was not available. This is probably due to the low internet usage in Tanzania (4.86%, 2014). Unlike other countries, short-course programmes designed for executives were not readily available.
Top Five Universities in Tanzania
Rank World Name of University Programmes Offered Est. Rank
1 2054 University of • MBA/EMBA with various specialties 1970 Dar es Salaam • Master of International Trade • Masters and Postagraduate Diploma in Entrepreneurship and Enterprise Development • Postgraduate Diploma in Microfinance
2 2190 Sokoine University • MBA (Agribusiness) 1984 of Agriculture • MBA Evening Programme
3 3297 Muhimbili University of No executive education identified 2007 Health and Allied Sciences
4 3994 Mzumbe University • MBA – Corporate Management 2006 • EMBA
5 4586 University of Dodoma No executive education identified 2007
Executive Education Programmes - University of Dar es Salaam
MBA/EMBA with various specialties
Target Working individuals with a variety of backgrounds.
Course Duration • Full-time: 4 semesters. • Evening (part-time): 7 semesters. • Executive: 24 months.
Programme Structure • Coursework and dissertation. • Full-time and part-time: Semester basis. Executive: Modular basis.
Programme Objective • Acquire the requisite theoretical understanding of the total business world and from Prospectus generic areas of management. • Develop practical skills for effective management, building confidence in teams and motivating other people. • Facilitate the development of professional and problem-solving attitude for prof- itable management and entrepreneurship.
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Master of International Trade Target World-class trade policy and business managers, who can serve the real needs of governments, businesses and other institutions that have trade and international business agendas. Course Duration 18 months. Programme Style Modular-basis coursework, internship, research leading to a dissertation. Programme Objective Gives students a balanced blend of macro and micro courses that are necessary from Prospectus to enable them to appreciate the linkages between macro policy issues relating to trade management and micro strategic issues relating to business management and increased international business interactions. Masters and Postgraduate Diploma in Entrepreneurship and Enterprise Development Target • Master: At least two years’ work experience at middle or senior position in a job related to enterprise development. • Postgraduate Diploma: At least two years’ experience in SME development. Course Duration • Master:18 months. • Postgraduate Diploma: 15 months. Programme Structure • Master and Postgraduate Diploma: Modular-basis coursework and project work. In between the modules, undertake practical assignments. Programme Objective • Master: The intention is to develop high-level competencies to act as change from Prospectus agents in the creation of an enabling environment for the development of entre- preneurship, small enterprises and the private sector in general. Postgraduate Diploma: Enhance the capacity of business development service practitioners to provide high standards of effective support for enterprise development in such fields as training, counselling and consulting. Postgraduate Diploma in Microfinance Target Potential and existing practitioners in the industry. Course Duration 15 months. Programme Structure Coursework and final project. Programme Objective The course develops all the basic skills of credit management, strategic and business from Prospectus planning, fundraising, marketing, accounting, finance, human resource management, ICT, etc., which are necessary for the effective performance of microfinance practitioners.
Executive Education Programmes: Sokoine University of Agriculture
MBA (Agribusiness)/MBA evening programme Target Not available Course Duration MBA (Agribusiness) 18 months Programme • MBA (Agribusiness) coursework and an internship leading to a paper. Structure • MBA evening: modular basis coursework and dissertation. Programme • MBA (Agribusiness) – develop professionals equipped with managerial and Objective from administrative skills and knowledge in agriculture-related businesses. Prospectus • MBA evening – develop professionals possessing varied backgrounds, to acquire knowledge and skills of business.
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Executive Education Programmes - Mzumbe University
MBA - Corporate Management
Target Future corporate managers.
Course Duration 2 years.
Programme Coursework and dissertation. Structure
Programme Provide job-based training to future corporate managers to serve business in the Objective from local and international context. It is a professionally tailored programme to meet the Prospectus growing demand of well-trained and skilled corporate managers.
EMBA
Target Seasoned and motivated executive and administrators.
Course Duration 2 semesters.
Programme Coursework, research and dissertation. Structure
Programme The programme focuses on strengthening skills in business management and Objective from puts more emphasis on the needs of those at senior level who manage the overall Prospectus operation of business enterprises or organisations in an increasingly competitive marketing enrolment.
References Cited • Tanzania Commission for Universities (March 2010), National Qualifications Framework Final Draft, http://www. idea-phd.net/images/doc-pdf/TCU_NQF_Final_Report_March_2010.pdf • Tanzania Commission for Universities, The TCU Rolling Strategic Plan 2016/17-2020/21, • http://www.tcu.go.tz/images/documents/TCU_Rolling_SP_2015_16_2020_12_May_2016.pdf • Mpehongwa, Gasper, ‘Academia-industry-government linkages in Tanzania: trends, challenges and • prospects’, Educational Research and Reviews, Vol. 8 (21), pp. 2093-2100, 10 November, 2013, • http://www.academicjournals.org/article/article1383036945_Mpehongwa.pdf
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Zambia
Skills Development in the Financial Sector In its initial Financial Sector Development Plan (2004-2009), the Bank of Zambia described its financial sector as a one in a “rudimentary” stage, with “limited financial intermediation and low public confidence.”43 The sector recognised the importance of skills development for its improvement and viewed employees as the “most valuable of assets.” Nonetheless, according to the Plan, barriers remained to the successful development and utilisation of financial sector staff’s skills and knowledge.44 Though there are a myriad of institutions that contribute to education and training for the financial sector (to wit, universities, business colleges, commercial banks, the Zambia Institute of Bankers and other regional learning centres), the plan suggested many of these institutions did not consistently produce graduates with the requisite knowledge and skills for the labour force, thereby contributing to a skills and knowledge gap.45 As a result of the lack of quality of financial education, new employees in the sector often required additional and customised training, something many local institutions did not have the capacity to provide.46
In addition to a lack of quality financial education and training programmes, Zambia’s tertiary education system was reported as being underfunded, meaning there were inadequate resources to improve the scope and quality of existing training programmes and services.47 Furthermore, a “weak enforcement of compliance of educational standards … [a] lack of a unified approach to staff recruitment, training and development and retention activities … [and a] lack of viable workplace policies by some financial institutions to manage the HIV/AIDS pandemic” were cited.48
Some steps have been taken in order to address the issues noted in the FSDP Plan and its second successor, FSDP Phase II (2010-2015). For example, the Professional Information Database was developed in order to create an inventory of available skills in the financial sector as to assist in identifying skills gaps and training needs.49 However, given that the database was discontinued (albeit with intentions to design a new database) and still only 37% of Zambian adults were financially served in 2013,50 additional measures are still required in terms of skills development in Zambia’s financial sector.
The need for skills development in Zambia’s financial sector is underscored by the 2012-2017 National Strategy on Financial Education. With a primary objective to “empower Zambians with knowledge, understanding, skills, motivation and confidence … to secure positive financial outcomes for themselves and their families by 2017,” the plan is mostly geared towards increasing the financial literacy skills of financial service consumers, rather than employees of the financial sector specifically. That being said, it can be surmised that with more financially literate consumers, the demand for higher quality and more convenient financial services (e.g. more ATMs, mobile banking platforms or additional personal banking products) will increase, thereby necessitating a highly skilled and prepared financial workforce.
The National Strategy may also help to ensure that barriers to skills development in the financial sector are overcome. As part of Component 2 (“financial education for youth”) and Component 3 (“financial education for adults”), the Strategy aims to ensure financial education is available in universities, colleges and other institutions and through workplace programmes.51
43 Republic of Zambia, Ministry of Finance and National Planning (2004), Finance Sector Development Plan for Zambia 2004-2009, p. 17, http://www.boz.zm/FSDP/Chapter3_KeyFinancialSector.pdf 44 Ibid. 45 Finance Sector Development Plan for Zambia 2004-2009, p. 20. 46 Finance Sector Development Plan for Zambia 2004-2009, p. 21. 47 Ibid. 48 Ibid. 49 Bank of Zambia (2015), Progress Report on the Implementation of the Financial Sector Development Plan Phase II, 2010-2015, p. 29, http:// www.boz.zm/Publishing/77/77_FSDPProgressReportMarch%202015Final.pdf 50 Bank of Zambia, Musapenda J. Phiri and Gladys Chongo Mposha (2013), Zambia’s National Strategy for Financial Education, presentation to the OECD-World Bank Conference on Building Financial Capability, http://responsiblefinance.worldbank.org/~/media/giawb/fl/ documents/misc/finlitedu-org-rtf/overall-tf/nairobi_1-2-4-phiri.pdf 51 Bank of Zambia (2012), National Strategy on Financial Education, p. 10, http://www.boz.zm/FSDP/National_Strategy_on_Financial_ Education_Zambia2012.pdf
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As a result, these educational providers will focus their efforts on developing high-quality financial education programmes, which may help to bridge the aforementioned financial skills gap faced by the broader sector, particularly when hiring new employees. Though, per the Strategy, these educational and training programmes will be designed to teach foundational finance skills for personal finance, the knowledge gained in delivering such programmes could be leveraged to provide financial education and training courses specifically for current or future bankers, investors and other employees within the financial sector.
University Education Zambia established the Higher Education Authority (HEA) as part of the 2013 Higher Education Act. HEA is a grant- aided institution which provides three main functions: (a) setting standards; (b) quality assurance; and (c) advisory and regulatory services. There are approximately 28 universities registered and regulated under HEA.
Zambia developed the Revised Sixth National Development Plan 2013-2016 (R-SNDP), which is to “aim at achieving the objectives set out in the Vision 2030 of becoming a prosperous middle-income country by 2030.”52 The national development plan also provides the vision for education as “Innovative and productive life-long education and training for all by 2030.”53 The below strategies have been developed to improve quality, access and equality of participation in tertiary education during the R-SNDP:54 • Progressively establish public universities in all provinces • Provide alternative modes of university education delivery • Establish a national research centre to coordinate research activities and promote collaboration between industry and research institutions • Promote upgrading of lecturer qualifications • Promote university education that is responsive to economic and social demands • Improve university governance, supervision, the monitoring of quality assurance and control systems
Gross enrolment ratio in tertiary education was extremely low in 1999 (only 2.2%) compared to the world average (18.3%). According to the Sixth National Development Plan report, “Currently, only eight percent of school leavers access public universities. Enrolment in public universities increased from 23,757 in 2011 to 27,925 in 2012. Despite the increase in the number of private universities and student enrolment, access to university education remained a serious challenge.”55 The tertiary education coverage beyond secondary school, therefore, remains very low in Zambia.
The data for government spending per tertiary student is not available. The total 2016 national budget amount is ZMK 53.14 billion. The education budget represents 17.2 percent of the overall budget and higher education accounts for 13 percent of the total education budget.56 The proposed spending on higher education only represents a very small percentage (2.23%) of the total national budget.
The linkage between higher education and industry needs to be strengthened and industry should get involved to improve the quality of higher education and to meet the labour market demands. Below are the challenges that the Zambia labour market faces: • Mismatch between supply of skills and demands of industry • Inadequate post-primary and post-secondary education opportunities that support practical, work-related skills • Limited graduation of micro and small-to-medium-scale enterprises • The quality of most employment activities does not match the features of decent work
52 Zambia Revised Sixth National Development Plan 2013-2016 Report. The government has begun engaging cooperating partners in the consultative process on the formulation of the Seventh National Development Plan (7NDP) which will be implemented from 2017 to 2021. 53 Zambia Revised Sixth National Development Plan 2013-2016 Report. 54 Zambia Revised Sixth National Development Plan 2013-2016 Report. 55 Zambia Revised Sixth National Development Plan 2013-2016 Report. 56 UNICEF (2016), Zambia Education Budget Brief, https://www.unicef.org/zambia/EducationBudgetBrief-4.pdf
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According to the HEA, “The challenge of quality education has been acknowledged across the education sector and will form part of the critical post-2015 education agenda in Zambia. There is now a call to ensure that education provided to all learners is of acceptable quality and relevant to their individual and societal needs.”57 In order to respond to the quality challenge, the HEA creates a quality assurance function which promotes and enhances quality higher education by harmonising the universities’ learning programmes. Zambia Qualifications Framework was created to “be a tool for the harmonization of all qualifications in the country’s education and training system, and assure learner progression.”58
Executive Education Overview Twenty-six universities were identified for this case study with approximately half of the universities offering ExEd programmes. Eleven out of 26 universities offer MBA or EMBA programmes. Their programmes last typically from one to two years on a full-time basis. Programmes on the part-time basis may take longer to complete. Student enrolment data were difficult to find. Based on the low student enrolment in overall tertiary education, we can infer that the enrolment in ExEd education is also very low. In addition to traditional classroom learning, online and distance learning are available to students. Most of the ExEd programme structures are coursework and dissertation or project.
Top Five Universities in Zambia
Rank World Name of Programmes Offered Est. Rank University
1 2583 University of MBA with various specialties 1966. Oldest Zambia public university
2 8145 Copperbelt • MBA General and Finance 1987 University • Master’s in Project Management; Human Resource Management; and Accounting and Finance
3 14637 University of • EMBA in Leadership & Wealth Creation 2007 Lusaka • MBA: General; Banking & Finance; Finance; and Education • Master’s in Economics & Finance; Accounting & Finance; Auditing; Marketing Management; Project Management; Procurement & Supply Chain Management; and Human Resource
4 15811 Zambian • MBA with various specialties 2002. First Open • Master’s in Trade, Development and International private University Relations university
5 16080 Mulungushi • MBA 2008 University • Master’s in Banking and Finance; and Human Resource Management
57 Ministry of Education, Science, Vocational Training and Early Education (2014), Zambia: Education for All 2015 National Review. 58 Zambia HEA website, ‘About HEA’, http://www.hea.org.zm/
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Executive Education programmes - University of Zambia
MBA with various specialties
Target Working adults with busy schedules as well as local and international professionals, looking for a global perspective in business.
Course Duration 2 years.
Programme Structure Coursework and dissertation. Online and blended learning (includes physical class attendance).
Programme Objective Designed and run by U.S.-based lecturers with the highest qualifications. Also de- from Prospectus signed to fulfil leadership, management and executive management roles within their community, and will count with the skills, knowledge and application methods to compete in the global market for the same positions.
Executive Education Programmes: Copperbelt University
MBA General and Finance
Target Not available.
Course Duration • Full-time/evening/distance. • Full-time: 18 months. • Part-time: 27 months.
Programme Coursework and dissertation. Structure
Programme MBA General: Not available. Objective from MBA Finance: Prospectus • To develop a broad but critical understanding of the major areas of finance and be able to apply the theoretical understanding to the practical management of the financial affairs of a business. • The highest level of relevant training in financial management that combines conceptual underpinnings with applications whilst providing analytical, technical, leadership and inter-personal skills. • The development of managerial skills that are essential for a senior finance manager, i.e. students are expected to be familiar not only with the uses of the acquired skills, but also with their application in real-life situations. • The student be availed the opportunity to obtain a certain degree of breadth and depth of knowledge and skills, a multi-disciplinary perspective, and the ability to integrate such knowledge and skills across all functional areas of management with a strategic and global perspective.
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Master of Science in Project Management
Target Designed for business executives who can deliver on projects with tangible results.
Course Duration Full time: 18 months.
Programme Coursework, research leading to a research report or dissertation. Structure
Programme • To train students to have a broad understanding of projects and how they are Objective from managed from inception to handover. Prospectus • To equip students with relevant knowledge and skills in project planning, control, finance and management. • To provide students with relevant in-depth knowledge and ability to manage projects efficiently.
Master of Art in Human Resource Management, Master of Science in Accounting and Finance
Target Not available.
Course Duration Not available.
Programme Full-time/evening/distance. Coursework. Structure
Programme Not available. Objective
Executive Education Programmes: University of Lusaka
Executive MBA in Leadership & Wealth Creation
Target At least 5 years’ work experience or exposure to management in different setups.
Course Duration Distance learning: 12 months.
Programme Structure Coursework and dissertation (business plan).
Programme Objective Not available. from Prospectus
MBA General, Banking & Finance, Finance, Education
Target Not available.
Course Duration • Part-time: (evening) 18 months to 24 months. • Distance learning: 18 months to 24 months.
Programme Structure Coursework and dissertation.
Programme Objective Not available. from Prospectus
Master’s in Economics & Finance, Accounting & Finance, Auditing, Marketing Management, Project Management, Procurement & Supply Chain Management, Human Resource Management
Target Not available.
Course Duration • Part-time: (evening) 18 months to 24 months. • Distance learning: 18 months to 24 months.
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Master’s in Economics & Finance, Accounting & Finance, Auditing, Marketing Management, Project Management, Procurement & Supply Chain Management, Human Resource Management (continued)
Programme Structure Coursework and dissertation.
Programme Objective Not available. from Prospectus
Executive Education Programmes: Zambian Open University
MBA with various specialties
Target Not available.
Course Duration 4 semesters.
Programme Coursework and project. Structure
Programme Not available. Objective from Prospectus
Master’s in Trade, Development and International Relations
Target Not available.
Course Duration 4 semesters.
Programme Coursework (includes workshops, simulation exercises) and dissertation. Structure
Programme Not available. Objective from Prospectus
Executive Education Programmes: Mulungushi University
MBA, Master’s in Banking and Finance, Human Resource Management
Target Not available.
Course Duration 4 semesters.
Programme Structure Coursework and project.
Programme Objective Not available. from Prospectus
References Cited • Ministry of Education, Science, Vocational Training and Early Education (Jun 2015), Zambia: Education for All 2015 National Review. • UNICEF (2016), Zambia Education Budget Brief Report: Review of Budget Performance and 2016 Allocations. • Zambia Higher Education Authority website, ‘About HEA’, http://www.hea.org.zm/index.php/about-hea • Zambia Qualification Authority (Jun 2016), Zambia Qualifications Framework Level Descriptors. • Zambia Revised Sixth National Development Plan 2013-2016 Report.
80 The Impact of Executive Education in Sub-Saharan Africa
Appendix E Suggested Design for Further Research
Longitudinal Quasi-Experimental Research Findings of this report are largely consistent with the scholarly position that ExEd can and does positively impact organisational performance (e.g. Tushman et al., 2007), chiefly through the aggregated skills and performance of ExEd-trained employees. However, some aspects of those who think that ExEd does not have an impact are at play (e.g. Mintzberg, 2004), chiefly the concern from employees that their education was too heavily focused on theory at the expense of practice and learning by doing.
Qualitative data from both financial institutions and especially universities indicate that more research is needed to investigate the impact of executive education on organisations. To best assess the outcomes and impact of any educational intervention, typically both quantitative and qualitative data need to be collected over an extended period of time. Although both forms of data were collected in this project, the quantitative data were cross-sectional, meaning that results cannot be interpreted over a time horizon.
Below are some suggestions to design a rigorous, longitudinal examination of executive education programmes based in SSA: • Longitudinal mixed methods design needed to track ExEd outcomes over time (1-5 years) before major improvements implemented (see Figure 11). • Quasi-experimental survey data for ExEd graduates and their managers/executives • Assess learning outcomes of graduates pre- and post-ExEd experiences • Compare performance data to employees who have not received ExEd (i.e. use test-control comparison samples) • Compare pedagogies of various types of ExEd programmes to gauge which results in highest levels of learning, performance (also compare international partnered programmes to local programmes to see which, if any, lead to better organisational results in the finance sector) • Qualitative interview data collected over time from graduates to assess trends, changes in programmes, performance, etc., to give a sense of ‘how’ and ‘why’ certain types of ExEd programmes are effective in terms of improving organisational performance • Based upon the evaluation component of the Instructional Systems Design (ISD) model (see below). The ISD is the traditional model used in human resource management to design and evaluate training interventions. Evaluation is the final stage in the model, which is the most appropriate stage for this recommendation. • A study of this type would be the first of its kind in the extant literature, and would contribute greatly to learning about the outcomes of ExEd (there is a distinct lack of such research in the extant literature at present)
Classic Quasi-Experimental Design
Pre-intervention Post-intervention
Intervention group A1 Intervention A2 E.g. Exec Ed Course
Non-random assignment to groups
B1 B2 Control No intervention group
Note: A1, Ba = Pre-intervention data collection points; A2, B2 = Post intervention data collection
81 FSD Africa Report
The Instructional Systems Design Model of Training and Development
Needs analysis Training design and Training evaluation delivery
1. Organisational analysis 1. Training objectives 1. Evaluation criteria 2. Task analysis 2. Training content 2. Evaluation design 3. Person analysis 3. Training methods 4. Learning principles
Preparation for Future Research To address the question of whether executive education leads to an increase in the underserviced market segments and whether training efforts have been used efficiently in achieving such a goal, additional research is needed. Methodologies such as Data Envelopment Analysis (DEA) and Stochastic Frontier Analysis (SFA) can be used to address such questions. Kablan (2010) uses SFA technique in the study on cost efficiency in the banking sector of the SSA region. Her study was more in terms of cost efficiency than the goal of servicing the underserviced sector. The DEA is a non-parametric method and hence less restrictive. The DEA approach helps to identify whether the Decision-Making Units (DMU) – in this case bank branches – use inputs efficiently to transform to outputs. The measure of efficiency is ascertained with respect to its peers through internally developed benchmarks. The output variables as an example can include percentage of loans to SMEs, percentage of micro-lending in the loan portfolio, and loan default rates. The training-related input variables will include proportion of trained staff in a given area of management such as financial application, finance and accounting; the training expense per capita and some form of training effectiveness index. Along with other suitable control variables DEA methodology can be used to study the efficiency of training to advance the desired goal.
FSDA Develop Specialised Training Institutions for the Financial Services Sector Our conceptual framework identified the need for specialised training institutions for the financial services sector. Our review of prior studies also indicates that there is a significant disparity in the quality of programmes offered by the existing institutions. This leads us to recommend the establishment of a specialised research and training institution for the financial services sector at either the country or regional level. The function of this institution would include: • Offering programmes to provide specialised skillsets required by various financial institutions • Serving as an accreditation body to approve other programmes • Conducting benchmark studies that will identify best practices unique to the evolving Sub-Saharan context • Identifying training needs for developmental goals within each region
Such a body in conjunction with the existing educational infrastructure will improve the quality of executive education and improve the performance of banking professionals. The table below depicts the actions and indicators related to our recommendations and their associated benefits.
82 The Impact of Executive Education in Sub-Saharan Africa
Indicators and Associated Actions & Benefits for FSDA
Indicators Action 1: Longitudinal Research Action 2: Develop a Specialised Training Institution
Instructional Design Addresses this indicator via consistent Content would be under control and (i.e. needs analysis; feedback from research as to what content management of FSDA; content and content development) works ‘best’ in a given environment; pedagogies could be compared to one feedback from programme comparisons another in controlled setting to look for allows for updating of content over time. optimal performance outcomes.
Measurement Consistent measurement over a 1 to 5-year Measurement of programmes would be period allows for developing a sense of under exclusive control and management of how and why certain programmes ‘work’ FSDA. compared to those that produce weak results; results would be the first of their kind in the extant literature on ExEd.
Performance Linking programmes to the performance of Linking programmes to the performance of Management their graduates will provide objective data to their graduates will provide objective data to help shape programme content. help shape programme content.
Recruitment & Selection Needs analysis can identify which employees Selection of candidates would be under would benefit most from ExEd and/or which exclusive control of FSDA; all students are graduates will provide the most optimal potential participants in application and contributions to the organisation. measurement of ISD implementations.
Training Which skills can be trained by which Selection of candidates for specific training programmes will be identified via the interventions would be under strict and programme comparisons over time (e.g. exclusive control of FSDA. which programmes provide optimal levels of risk assessment?).
83 FSD Africa FSD Africa is a non-profit company funded by the UK Government which aims to increase prosperity, create jobs and reduce poverty by bringing about a transformation in financial markets in SSA and in the economies they serve. It provides know-how and capital to champions of change whose ideas, influence and actions will make finance more useful to African businesses and households.
Through access to finance initiatives, it seeks to build financial inclusion. Through capital market development, it looks to promote economic growth and increase investment. As a regional programme, it seeks to encourage collaboration, knowledge transfer and market-building activities – especially in fragile states.
Where there are opportunities to drive financial market transformation more quickly and intensively through capital investment, FSD Africa will deploy equity, loans or guarantees as the situation requires.
The FSD Network
The FSD Network is an alliance of organisations (or FSDs) that reduce poverty through financial sector development in sub-Saharan Africa.
Today, the FSD Network:
• Comprises a group of ten financial sector development programmes or ‘FSDs.’ Located across sub-Saharan Africa, it includes eight national FSDs, Access to Finance Rwanda, Enhancing Financial Innovation & Access in Nigeria, Enterprise Partners, FSD Kenya, FSD Moçambique, FSD Tanzania, FSD Uganda, FSD Zambia and two regional FSDs, FinMark Trust in Southern Africa and FSD Africa. • Is a world-leading proponent of the ‘making markets work for the poor’ approach. • Specializes in a number of themes from agriculture finance and savings groups to payments, SME finance and capital market development. • Represents a collective investment of GBP 363.834+ million by DFID; Bill & Melinda Gates Foundation; SIDA; DANIDA; Foreign Affairs, Trade and Development Canada; RNE (Netherlands) and World Bank. • Spends GBP 44.4658+ million per year, predominantly through grant instruments. • Employs over 120 full time members of staff and a uses wide range of consultants.
FSD Africa, Nairobi, Kenya 1550-220 Laurier Ave Department for International [email protected] West Ottawa ON K1P 5Z9 Development @FSDAfrica Canada [email protected] @DFID_UK www.fsdafrica.org www.cbie-bcei.ca www.gov.uk
Design: Kristina Just